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Sierra Leone’s national inflation rate has fallen sharply in December 2024, dropping by 1.63 percentage points to 13.78 percent, down from 15.41 percent in November.
Awoko reports that the decline marks a notable shift in the country’s economic landscape, with key sectors showing signs of stabilization and providing much-needed relief to consumers.
The food and non-alcoholic beverages sector, which accounts for 40.3 percent of the Consumer Price Index (CPI), played a significant role in the inflation decrease. Year-on-year (YoY) inflation for this category fell by 0.84 percentage points, from 14.73 percent in November to 13.89 percent in December. Analysts attribute this decline to improved agricultural production and a potential cooling of demand as consumers adapted to economic conditions. Food prices, which had been volatile, also stabilized, dropping by 1.00 percentage point during the same period. This reduction is particularly impactful, as food costs heavily influence household expenses across the country.
Another major contributor to the inflation drop was the housing, water, electricity, gas, and other fuels sector, which saw a dramatic decrease of 14.04 percentage points. Inflation in this category fell from 26.41 percent in November to 12.37 percent in December. This sharp decline suggests improvements in domestic energy supplies or a stabilization in global oil prices, easing financial pressures on households and businesses.
The reduction in energy costs is seen as a critical step in controlling one of the primary drivers of inflation, offering relief to consumers and businesses alike.
Other essential sectors also contributed to the overall decline in inflation. Clothing and footwear prices dropped from 16.11 percent to 13.84 percent YoY, while health services inflation fell from 15.75 percent to 13.35 percent. These decreases reflect a broader trend of price stabilization across various consumer goods, likely driven by increased retail competition and shifting consumer preferences.
However, not all sectors experienced declining prices. The communication sector saw inflation rise from 0.84 percent in November to 1.64 percent in December, driven by higher costs for telecommunications and internet services. Similarly, the restaurant and hotel sector experienced a significant increase, with inflation jumping from 21.28 percent to 27.71 percent, a 6.43 percentage point rise. This surge is attributed to increased demand for dining and accommodation, likely fueled by a recovery in tourism and more frequent local outings.
Additionally, miscellaneous goods and services saw a 1.55 percentage point increase, rising from 19.69 percent to 21.24 percent, potentially due to supply chain disruptions or spikes in demand for specific products.
Dropped inflation yet things are getting harder everyday?
Can’t be serious man!
Which country inflation rate has dropped? Because of Sierra Leone as specific things are going harder everyday.
This Sierra Loaded platform is becoming something else. You just copy all sort of stories without fact checking. If you are running paid advertising please say so because even your staff that posted this information does not agree with it.
Have a more balanced and objective approach don’t be a vehicle of deception.
Inflation rate drop as you guys say.
But everyday is the same struggle and cry to the people of Sierra Leone .
I’m not an economist but I think the drop of inflation should reflect on the value of the money☹️