The inflation rate stood at 3.4% in October 2020 in WAEMU countries, according to data from the BCEAO. This is its highest level since 2013, after the record 3.3% left in August 2020.
By country, Burkina is in pole position with an inflation rate of 4.6% in October against 4.5% in September, thus maintaining the upward trend observed since June. Benin and Mali come second with 4.4%, while Guinea-Bissau has the lowest rate (1.1%) in the region. It should be noted that inflation has not been negative in any of the WAEMU countries since July 2020.
Inflation was pulled over the period considered (October 2020) by the category “food and non-alcoholic beverages”, the rate of which stands at 2.6%, which has been rising steadily since April. “The acceleration in the pace of price increases is mainly driven by the“ Food ”and“ Restaurants and hotels ”components, whose overall contribution to total inflation fell from 2.5 percentage points in September 2020 to 2, 8 percentage points in October 2020, in connection with the increase in the prices of vegetables and fruits, tubers and plantains as well as fishery products in most countries of the Union ”, indicates the BCEAO in its monthly statistics report .
Note that the UEMOA Convergence Pact, in place since 2015, imposed an average annual inflation rate of 3%. But since April 27, 2020, this pact has been suspended by the heads of state for a relaxation of budgetary rules aimed at allowing their country to have free rein to face the Covid-19 pandemic. Meeting in September 2020, the cabinet said a new pact should be on the table before the end of the year, due to the crisis.
