25.2 C
City of Banjul
Friday, May 24, 2024
spot_img
spot_img

Gambia ranked 7th in Africa with highest food inflation

- Advertisement -

By Omar Bah

The Gambia is ranked 7th African country battling high food inflation, contributing significantly to its overall inflation. In recent years, several African countries including The Gambia have seen rising food inflation, which has had a substantial impact on their economies and residents’ daily lives. According to a recent United Nations report, this issue is mostly caused by weak currencies and severe weather conditions.

The annual inflation rate in Gambia edged higher to 9.2% in February and reached 17.2% in March. According to GBoS, inflation rate in Gambia averaged 8.28 percent from 1962 until 2024, reaching an all-time high of 75.64 percent in August of 1986 and a record low of -10.91 percent in July of 1964.

- Advertisement -

The Gambia is an import-dependent nation that is vulnerable to global price fluctuations. The country faces rising import costs due to global inflation and a depreciating Gambian Dalasi. Shortfalls in domestic food production also contribute to rising food prices. The government is focusing on boosting domestic food production and tourism to mitigate the impact on essential goods.

Inflation is a common economic term that refers to the general increase in prices of goods and services over time. In simpler terms, your money buys less today than it did yesterday or a year ago. It acts like a silent tax, eroding the purchasing power of citizens. This makes it difficult to afford basic needs and reduces your overall standard of living. High inflation can also discourage businesses from investing and expanding, hindering economic growth. While a small and steady level of inflation is generally considered healthy for an economy, high inflation can wreak havoc.

A recent World Bank report titled “Addressing Inequality to Revitalize Growth and Alleviate Poverty in Africa” indicates a potential turning point. The report projects that inflation will cool across most Sub-Saharan African nations in 2024 compared to the previous year. 90% of Sub-Saharan African countries are projected to experience a decrease in 2024 compared to the previous year.

- Advertisement -

This positive trend is attributed to factors like the normalization of global supply chains, a gradual decline in commodity prices, and tighter monetary policies implemented by African governments. While some countries are projected to experience a decline in inflation rates in 2024, a significant number continue to grapple with concerning figures.

Join The Conversation
- Advertisment -spot_img
- Advertisment -spot_img