By Sama Mildred
Cameroon is currently facing gross inflation rates like other countries. There is an increase in the price of commodities especially food items like vegetable (groundnut) oil, flour, milk, bread, groundnut, cereals, etc. “The rise in the prices of food and energy worldwide constitutes a double threat of inflation. The inflation rate in the first quarter of 2022 stands at 2.9%“ the National Institute of Statistics (INS) warns against the rise of inflation in the country.
According to projections by the International Monetary Fund, Cameroon’s inflation rate is expected to reach 4.6% in 2022. Inflation rate in Bamenda is already exceeding 4.4% . Explaining further “The outlook is clouded by considerable uncertainty arising from the sharp increase in international commodity prices, especially for oil, fertilizers, and foodstuffs-accentuated by the war in Ukraine and tightening conditions in international financial markets,” International Monetary Fund (IMF) said.
Talking to a young man, Calvin resident in Bamenda, “If I change 10,000 francs that is all about the money, that is when I have a 10,000 CFA Francs bill and I start using it the money finishes without me really understanding what I use it for. The problem with this inflation is that it is concentrated on essential goods making it more painful for those on a lower income.”
Explaining to Draufsicht Bamenda, “Vegetable oil commonly known as groundnut oil is now a luxury to afford. I bleach palm oil to use in frying” Mirabel, a mother of three children based in Bamenda says about the increase in the price of groundnut oil.
According to Wikipedia, Inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. In simple terms, inflation is the rate of increase in prices over a given period of time.
This inflation pose as a threat to Cameroon’s emergence by 2035 which is the ambition of the country. High inflation is a challenge for the economy as the value of money is reducing and it is also affecting exports. With this economic crisis, no clear statement has been made by the government on how to curb the situation.