A low Consumer Price Index (CPI) provides several benefits to African countries, including economic stability and improved general quality of life. When the CPI is low, the purchasing power of money is largely stable, encouraging individuals to save rather than hurry to spend on things whose costs may rise.
A low CPI often results in slower price rises for products and services, which helps customers keep their purchasing power.
When inflation is low, salaries increase, allowing households to spend more of their money. This consistency is especially important in African nations where many people live on a low income.
This index also encourages businesses and investors to make long-term investments on the continent, given the stability it provides for African countries.
By June 2024, Sub-Saharan Africa’s food inflation rate had risen to 5.4 percent, exceeding the Consumer Price Index Is 4.1 percent reading for that month, as seen in the World Bank’s latest Africa Pulse report for 2024, released in October.
Food inflation (median) decreased to 5.4 percent by June 2024, with low- and high-inflation Sub-Saharan African nations experiencing 4.2 and 25.6 percent, respectively, the report adds.
The Consumer Price Index (CPI) is a metric that measures the average change over time in the prices paid by consumers for a set of products and services.
It is a key metric of inflation, indicating how much prices have risen or fallen in a certain period.
The CPI is commonly used to measure price changes associated with the cost of living, directing choices on interest rates, salaries, and social welfare modifications.
With that said, here are the African countries with the lowest Consumer Price Index mid way through the year.
Top 10 African countries with the lowest price change in consumer goods and services mid-2024
| Rank | Country | Consumer price index |
|---|---|---|
|
1. |
Seychelles |
1.2% |
|
2. |
Mali |
1.2% |
|
3. |
Benin |
1.4% |
|
4. |
Central Africa Republic |
1.5% |
|
5. |
Cabo Verde |
1.6% |
|
6. |
Gabon |
2.4% |
|
7. |
Mauritania |
2.7% |
|
8. |
Equatorial Guinea |
2.9% |
|
9. |
Botswana |
3.0% |
|
10. |
Mozambique |
3.1% |
