Many African countries are pressured by high inflation rates, thus causing everything to become expensive.
Inflation is measured by the rate at which prices of goods and services increase within a given timeframe.
Business Insider Africa presents eight African countries with the highest inflation rates.
This list was compiled after comparing statistics from different sources.
Some of the sources that were consulted include the statistics agencies of different African countries, Trading Economics, Statista, Reuters, etc.
Earlier this year, some renowned economists told Bloomberg that the biggest danger to the global economy in 2022 is not the COVID-19 pandemic. Instead, it would be high inflation. And quite honestly, the projection didn’t come as much of a surprise to analysts at Business Insider Africa. After all, inflation has always been a major problem here in Africa.
Inflation is one of the biggest enemies to wealth creation. It silently but consistently erodes the value of money. Across Africa, it is a constant problem. And even though many of those it affects are unaware of the damage it can cause, they do feel its effect in the form of high prices, expensive food items, etc.
In this article, we shall be focusing on the eight most expensive African countries to live in due to their high inflation rates. But before we proceed to unveil the list, we have some more information for you about what inflation is all about.
What is inflation?
According to Investopedia, inflation occurs when there is a significant decline in the purchasing power of a currency. It can be measured by the rate at which the prices of goods and services rose within a particular period. A sharp increase in the cost of raw materials is often one of the primary causes of inflation. A surge in demand for goods and services can also trigger an upsurge in prices, thus leading to high inflation.
A common trend among countries with high inflation rates
One trend that is common among African countries with high inflation rates is that they are mostly import-dependent. When a country imports more than it exports, it inevitably becomes susceptible to various economic challenges, including weak exchange rates and high inflation rates which, in turn, makes everything expensive.
Africa’s most expensive countries due to high inflation
Whereas inflation is a general problem across the continent, some countries have it worse. And living in these countries can be quite expensive as you can see in the list below.
Do note that we used data derived from very reliable sources, including Statista, Reuters, Trading Economics, the statistics agencies of different African countries, etc. Also, note that inflation rates are not constant. So, if you are reading this at a later date, chances are the rates might have changed.
African countries with the highest inflation rates in 2022
Sudan: According to Reuters, Sudan’s Central Bureau of Statistics reported the country’s inflation at 258.40% in February 2022. This makes Sudan the country with the highest inflation rate in Africa. It should however be noted that Sudan’s inflation rate is expected to reduce to 41.8% before the end of 2022, according to projections by Statista.
Zimbabwe: According to the Zimbabwe National Statistics Agency (ZimStat), this Southern African country’s inflation rate stood at 66.1% as of February 2022. This makes Zimbabwe the African country with the second-highest inflation rate.
Ethiopia: Ethiopia’s inflation rate rose to 34.7% in March 2022, up from 33.6% in February this year. This is according to statistics obtained from various sources, including Trading Economics and the US Department for Agriculture.
Angola: According to statistics obtained from Angola’s Instituto Nacional de Estatística, the inflation rate in the country increased by 1.565 to 28.56% in March, up from 27.28% in February. Statista has projected that inflation in the country would decrease further to 14.9% this year.
Zambia: According to Zambia’s Central Statistical Office, the inflation rate in this Southern Africa increased to 16.1% in March, up from 15.30 in February.
Ghana: According to Ghana Statistical Service, Ghana’s inflation rate accelerated to 19.4% in March of 2022, up from 15.7% in February.
Sierra Leone: Information obtained from Statistics Sierra Leone shows that this West African country’s inflation rate accelerated to 17.94% in March of 2022, up from 15.77% in February.
Nigeria: Nigeria’s inflation rate jumped to 15.92% in March 2022, up from 15.70% in February. This is according to information made available by the country’s National Bureau of Statistics (NBS). The projection, according to Statista, is that Nigeria’s inflation would eventually reduce to 13.3% before the year runs out.