African countries with highest inflation in 2023

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Sub-Saharan Africa is facing one of the most challenging economic environments in recent years, characterized by a slow recovery from the pandemic, rising food and energy prices, and high levels of public debt. Inflation has long been one of Africa’s most pressing challenges. And many of those countries have been unable to stem the tide of crisis despite various measures. Inflation defying gravity.

Continental inflation and inflation rates vary by country and region, but the common trend is an upward trend. Some countries, such as Zimbabwe and South Sudan, have experienced much higher inflation levels in recent years, reaching hundreds or even thousands of percent annually.

Similarly, the causes of inflation vary across the African continent, but many African countries suffer from high levels of inflation due to factors such as political instability, poor economic policies and external shocks. For example, in recent times we have seen global events such as the COVID-19 pandemic and the war between Russia and Ukraine put inflationary pressure on the continent’s economies.

High inflation impedes economic growth as it reduces consumer purchasing power, increases business uncertainty and reduces foreign investment.

Below are the African countries with the highest interest rates.

Zimbabwe (89.10%)

Zimbabwe’s inflation rate remains one of the highest in the world. For several years, the country’s inflation rate was worrisome. Zimbabwe’s hyperinflation was difficult to measure after the country’s high inflation rate in 2008-2009, when the government stopped publishing the inflation rate. Many economic observers argued that this was meant to distract attention from runaway inflation that represented the country’s unprecedented economic meltdown.

Average inflation rate in Zimbabwe 89.10% Best ever from 2009 to 2023 837.53% in July 2020. costly items $100 1980 will cost $345.81 billion in early 2022.

Zimbabwe’s consumer price inflation eased to 92.3% y/y in Feb-2023, down from 229.8% the previous month. Annual inflation has been trending downward since September 2022, reaching its lowest level since March last year.

Sudan (63.3%)

Prior to 1997, inflation had skyrocketed.But the implementation of International Monetary Fund Reform Program In 1997, inflation fell below 47% that year, below 20% in 1998 and 1999, and single-digit slowed down to By 2000.

Until 2006, the inflation rate was 7.2%. However, due to the impact of global inflation, Sudan’s inflation rate reached an annual average of 11.2% and 13% in 2010. Since then it has been trending upward.

In February 2023, Sudan’s annual inflation rate will be 63.3% Up from 83.6% of the previous month. This was his weakest reading since December 2019.

Ghana (53.6%)

Recently, Ghana has been battling the worst economic crisis in a generation amidst a currency crisis that has worsened the country’s financial position.

Ghana’s annual inflation rate eased for two months from February 2023 to 52.8%. 53.6% After reaching a more than 20-year high of 54.1% the previous month and in December. His December inflation in the West African country was the highest since his 59.7% in April 2001, as fuel, utility and food prices soared.

The current economic slowdown reflects a steady Cedi and falling international oil prices. Food price growth eased for the first time in over a year to 59.1% in February from 61% the previous month, while non-food inflation remained unchanged (47.9%).

Sierra Leone (38.48%)

According to the latest official report from Statistics Sierra LeoneSierra Leone’s inflation rate rose from 37.09% in December 2022 to 38.48% in January.

According to Statista, Sierra Leone’s average inflation rate will total 15.6 percentage points. Average inflation is estimated to reach 10.3% in 2027.

Ethiopia (32%)

In May 2022, Ethiopia will 37.2%, one of the highest levels in recent years. To his credit, he dropped to 30.7% in September, but climbed to 35.1% last November.

However, in February 2023, Ethiopia’s annual inflation rate will be 32%, down from 33.9% in the previous month. The Covid-19 pandemic, the global impact of Russia’s invasion of Ukraine and the prolonged drought in southeastern Ethiopia continue to put pressure on the economy.

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