With the exception of Benin and possibly Liberia1, headline inflation is now significantly above historic trends across West Africa. However, five markets stand out – Burkina Faso, Ghana, Mali, Nigeria and Sierra Leone.
1. Ghana (29.8%), Sierra Leone (28.0%) and Nigeria (18.6%) – fastest of the 15 markets. These dynamics contribute to constrained growth in Ghana, as well as aversion to its debt, dollarisation in Sierra Leone and insecurity in Nigeria. See: Sierra Leone limits cash withdrawal after currency reboot and Bandits harass Nigeria's capital but elections are on the front burner.
2. The deterioration in price stability beyond historic trends is greatest in Burkina Faso and Mali; two countries that also experiencing high political and security-related impediments to normal economic relations. In these two countries, whereas Inflation averaged around 1.0-1.5% year-on-year between 2017 and 2021 it currently stands at 17.8% in Burkina Faso and 9.5% in Mali today. See: West Africa's coups.
Footnote
1 The most recent outturn published by Liberian statistical authorities was 9.51% in March.
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