Tuesday, March 27, 2007

Sierra Leone lacks national inflation rate

The International Monetary Fund has recently stated in its country report Outlook for 2006/7' that Sierra Leone does not yet have a national inflation rate, and the four principal urban areas ( Freetown , Kenema, Bo and Makeni) calculate their own inflation rates.It said despite the official outlook, that inflation is expected to revert to low single digits, they forecast that average annual inflation will remain in double digits, at around 13% in 2006 and 14% in 2007 (compared with 12% in 2005), owing to a number of factors.Economic activity, it said, is expected to remain fairly robust, creating a high demand for a limited amount of goods.The depreciation of the leone against the US dollar, caused by import dependency, and high international oil prices will also constrain any reduction in inflation. Higher public spending will also contribute to inflationary pressures, and any delays in donor disbursals will increase the need to fund the fiscal deficit domestically.

Source: Concord Times Newspaper ...Sierra Leone, West Africa : Online newspaper