Top 10 African countries with the most improvement in consumer price from 2024 to 2025

While moderate inflation, which is a measure of CPI, is often regarded as a sign of a developing economy, a continuously high or unexpected inflation rate can have disastrous consequences for national finances.

On the other hand, a better year-on-year inflation rate, in which inflation falls or stabilizes at a manageable level, can provide significant fiscal benefits to both governments and individuals.

One of the key fiscal advantages associated with rising CPI is more budget predictability. When inflation is under control, governments can better estimate tax collections and allocate funds for public services, infrastructure, and social initiatives.

It also minimizes the likelihood of unexpected budget shortfalls due to rising expenses, since the cost of products and services becomes more predictable.

A higher CPI rate also lowers the cost of debt payment.

Countries with strong CPI indexes frequently experience rising interest rates as lenders want greater returns to offset the depreciation of the currency.

Lower CPI figures helps to keep interest rates constant, lowering the cost of borrowing for governments. This budgetary breathing room enables more profitable investments rather than merely managing debt repayments.

Furthermore, a more positive CPI forecast boosts investor confidence, both locally and abroad.

Stable inflation frequently indicates strong economic management, which attracts foreign direct investment (FDI).

Increased investor confidence may result in a stronger currency, a more resilient bond market, and more dynamic capital inflows, all of which help the public sector.

With that said, here are the 10 African countries with the most improvement in their consumer price index (annual change %) from 2024 to 2025, according to the Africa Pulse report by the World Bank.