The annual inflation rate slightly moved upwards from 9.45 percent in May 2016 to 10.16 percent in June 2016.
The June inflation increased as a result of the increase in food prices during the Ramadan and the exchange rate deepening with the drop in the value of the Leone to the Dollar.
“This reflects a monthly increase that is greater than the previous month, meaning that prices are increasing at a higher rate. The increase in the price level for June 2016 was as a result of the increase in the demand for food items due to the month of RAMADAN or Eid Mubarak and reinforced by the steady depreciation of the Leone as against the foreign currencies especially the US dollar,” the release says.
On the parallel/black market, the Dollar is almost selling for Le7,000 and this is reflecting on prices not just on imported goods but also locally produced goods because of the domino effect that the exchange rate has on prices, Awoko market team observed.
A 50kg bag of rice cost about Le200,000 which was not the case 2 months ago.
“The year-on-year rates of inflation increased in Western region from 9.16 per cent in May, 2016 to 9.73 per cent in June, 2016, in Northern region from 11.84 per cent to 12.66 per cent, in Southern region from 9.95 per cent to 11.0 per cent and in Eastern region from 10.58 per cent to 11.29 per cent,” according to the statement.