Food Prices, Most Important Component of Africa And Inflation Indices – Africa Business Roundup

By David Indeje / March 3, 2017


While food price spikes caused by drought, war, economic factors, inefficient regional markets or agricultural policy are not uncommon, in time a measure of stabilisation usually occurs. The problem for African consumers is that almost everywhere the trend is persistently upwards. Kenya’s food price inflation has averaged about 12.5% a year for the past five years; Ghana’s averages 8% a year; even in Botswana, which has generally managed inflation better than most, the average is 5% a year. Only in the eight countries in the West Africa Economic and Monetary Union (WAEMU) countries, where the CFA franc is pegged to the Euro, is the five year average closer to 5% a year than the double digit inflation common elsewhere on the continent.  The effect of incessant annual increases of these magnitudes is pernicious, the more so when accompanied by rising fuel prices.

While food prices rise constantly, few are able to increase their earnings to match. Read:

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About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government and society. He has been practicing Journalism since 2008. Environment, Agriculture Business, Health and Gender Development stories are his passion.

David can be reached on: (020) 528 0222
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Email: [email protected]

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