Inflation increased from 8.21% in August to 8.35% in September mainly on the depreciation of the Leone and reduced supply in commodities according to Statistics Sierra Leone in a press release.
This means prices increased slightly in September compared to the previous month. A Dollar sells at Le.5,521.74 and buys Le.5,412.40, Bank of Sierra Leone stated on its website on November 12. Inflation is projected to reach double digits by December 31 this year.
“National inflation rose to 7.9 percent in December 2014 and further to 8.4 percent in September 2015 due to disruption in the supply of basic goods and the recent depreciation of the exchange rate,” Dr. Kaifala Marah stated in the 2016 Budget presented to parliament on November 6.
“…the Bank of Sierra Leone remains committed through proactive monetary policy management, to deliver inflation at the targeted level of 9.5 percent at the end of 2016,” he said.
Inflation in 2016 will be driven by supply shocks and movements in the exchange rate. Monetary policy will therefore focus on addressing the exchange rate to address shocks on domestic prices.
“Inflation is projected to decline to a single digit of 9.5 percent in 2016 and 2017 and further down to 8.5 percent in 2018,” according to Dr. Marah.
No comments:
Post a Comment