• Mali's inflation rose to 8.3% in February 2025, the highest rate in the West African Economic and Monetary Union (WAEMU).

• Rising food, housing, energy, and communication costs continue to push prices up.

• Heavy reliance on imports and recent shocks have made the economy more vulnerable.

Mali recorded the highest inflation rate in the WAEMU region in February 2025, hitting 8.3%, according to the latest monthly bulletin from the Central Bank of West African States (BCEAO). That figure is up from 7.6% in January and far above the BCEAO’s target range of 1% to 3%.

The rise in prices was driven mainly by surging costs in essential categories. Food and non-alcoholic beverages were up by 8.2%, while housing, water, electricity, gas, and other fuels jumped 11.4%. Personal care, social protection, and miscellaneous goods increased by 12.5%, and communication services climbed 9.8%. Prices at restaurants and hotels also rose by 5.8%.

Despite these pressures, Mali’s economy has shown resilience in the face of several external and domestic shocks, the International Monetary Fund (IMF) noted. These include the disruption of maritime trade through the Red Sea, tighter access to financing in the region, and ongoing security challenges at home. All of these have pushed up the cost of importing basic goods like food, fertilizer, and supplies needed for displaced communities.

Sanctions imposed by the Economic Community of West African States (ECOWAS) following the military coup also disrupted trade flows within the bloc. For an economy like Mali’s, which relies heavily on imports for essential items, this has made it even more exposed to global price swings. In the final quarter of 2024, Mali’s food import bill rose to CFA124 billion ($206.9 million), up from CFA116.9 billion the previous quarter, according to the national statistics office, Instat.

Guinea-Bissau posted the second-highest inflation in February at 5.8%, while Benin recorded the lowest rate at just 0.1%. On average, inflation in the WAEMU region stood at 2.1%—down 0.4 points from January. This drop was largely due to falling food prices and lower costs in the hospitality sector, though communication services saw a slight increase.

Meanwhile, the BCEAO’s Monetary Policy Committee kept its main policy rate unchanged at 3.5% during its March 5 meeting.

Lydie Mobio (intern)