(Ecofin Agency) - The inflation rate within the WAEMU zone averaged 2.7% in January 2024, remaining below the 3% threshold of the Central Bank of West African States (BCEAO). However, notable increases were observed in Niger and Burkina Faso, where prices surged beyond the bank's upper limit.

Niger and Burkina Faso recorded the highest inflation rates in the WAEMU region in January 2024, according to the monthly statistical bulletin from the BCEAO. Specifically, Niger saw an inflation rate of 6.9%, and Burkina Faso recorded 4.3%, surpassing Côte d'Ivoire, which had an inflation rate of 3.1% during the same period.

This inflationary trend comes amid economic sanctions imposed by the Economic Community of West African States (ECOWAS) on Niger and Burkina Faso following military coups in both countries. Niger's economic situation has been severely impacted by the closure of land and air borders with ECOWAS peers. This has led to disruptions in trade and basic goods supply, with shortages and subsequent price hikes, especially for food items.

Mali, on the other hand, recorded the lowest inflation rate at 0.5% and Benin experienced a deflation of -1.2% during the reviewed period.

Overall, the WAEMU's inflation rate averaged 2.7% in January 2024, up from 2.5% in December 2023, primarily driven by the rising costs of food, housing, and transportation.

In response to the challenging economic environment, the BCEAO's Monetary Policy Committee, exercising caution, raised the key interest rate to 3.5% in December 2023. This move aimed to "limit the effects of risk factors on inflation and external accounts."