By Isha S. Mansaray
According to the Statistician General (SG) of Sierra Leone, Professor Osman Sankoh of Statistics Sierra Leone (SSL), “Sierra Leone maintained single digits inflation for the second time since July 2016. The annual national consumer price index inflation (year-on-year) stood at 9.60 per cent, up by 0.65 percentage point from 8.95 per cent in March 2021. The monthly consumer price inflation for April 2021 is 2.73 per cent, up by 1.89 percentage points from 0.84 per cent in March 2021.”
He made this disclosure during a press briefing held in the SSL conference room in Freetown.
Statistics Sierra Leone coordinates, collects, compiles, analyses and disseminates official statistics to assist informed decision-making and discussion within government, business and the media, as well as the wider national and international community.
According to Prof., the National Monthly CPI increased from 325.72 in March 2021 to 334.60 in April 2021, resulting to 2.73 per cent inflation this month. The annual national year-on-year inflation for April 2021 at 9.60 per cent indicates an upward trend compared to 8.95 per cent in March 2021.
The Western Region showed an upward movement from 7.90 per cent in March 2021 to 8.11 per cent in April 2021. The Northern Region moved from 9.93 per cent in March 2021 to 12.79 per cent in April 2021. On the other hand, two other regions moved downwards. The Southern Region moved from 10.59 per cent in March 2021 to 10.49 per cent in April 2021 while the Eastern Region moved from 8.57 per cent in March 2021 to 7.51 per cent in April 2021.
“We are planning on including Northwest on the CPI data collection. However, it takes scientifical procedure to get there. We have to do feasibility studies and tour that region. This is due to the fact that the Northwest was never a region on its own during the 2008 census and have been counted under the North East ever since,” said the SG.
He said the total items on the baskets are calculated by an average range. “The National CPI measures the change in prices on average, from month to month, of the goods and services by household in Freetown, Bo, Kenema, Kono and Makeni, including all expenditure groups.”
He furthered that prices are collected for 436 items and all prices are prevailing retail market prices from six markets in Freetown and three each in Bo, Kenema, Makeni and Kono for weekly prices, while other outlets were used for monthly items whose prices are less likely to fluctuate rapidly. “We are using the modified Laspeyres formula to compute indices according to the classification of individual consumption by purpose (COICOP) with 12 functions,” he added.
Prof. Sankoh concluded by encouraging the public to always feel free to do enquiries on CPI or other databases at Statistic Sierra Leone. “The public has the right to make enquiries at Statistics SL. The public should also work along with us. You should be able to predict what the CPI will look like in the following months’
According to the numbers, food items inflation is still incredibly high and going up, which affects the average Sierra Leonean that constitutes the majority of the country.
Explaining the stories behind the numbers, Mwaluma Andrew Bryma Gegbe, the Director of National Accounts and Economic Statistics Division at Statistics SL, said: “Food items inflation increased by 0.19 percentage points from 15.45 per cent in March 2021 to 15.64 per cent in April 2021.”
He also indicated the key upward movers in food item basket: “Long grained rice was up by 10 per cent; imported medium grained rice up by 8 per cent; smoked bonga up by 12 per cent; smoked catfish up by 19 per cent; and yellow plantain up by 17 per cent.” However, he said, “Yams went down by 18 per cent; potatoes down by 13 per cent; small mango by 27 per cent and pineapple down by 16 per cent.”
Mr. Gegbe further gave update on non-food items inflation. He added “The non-food items inflation increased by 0.79 percentage point from 3.88 March 2021 to 4.67 percent in April 2021.” The following, according to him, are the major causes: Alcoholic Beverages, Tobacco and transport by 1.8 percent.”
Mr. Gegbe gave a summary of the ‘Key Upward’ and ‘Key Downward’ movers of items in the basket of the Consumer Price index of April 2021. Making insights on the former, Mr. Gegbe said, “Alcoholic beverages, tobacco and narcotics increased in March 2021 from 9.98 per cent in March 2021 to 13.80 per cent in April 2021. The inflation rate increased by 4.47 percentage points per year-on-year; and housing, water, electricity, gas and other fuels increased from 2.92 per cent in March 2021. The inflation rate increased by 4.47 percentage points year-on-year.”
Mr. Gegbe continued with insights on the downward movers of food items in the basket. “Health declined by 1.43 percentage point from -1.86 per cent in March 2021 to -3.29 percent in April 2021 and miscellaneous goods and services (some of which are hairdressing, shoe shining, haircuts etc.) declined by 1.97 percentage points from 3.27 percent in March 2021 to 1.30 percent in April 2021.”
Mr. Gegbe further gave a summary on the Consumer Price Index of April 2021.
“In April year-on-year national inflation rate indicates a slight increase but remains at single-digit and on downwards trajectory, and is above the estimates of the Western and Eastern regions but below Southern and Northern regions’ estimates. Both food and non-food inflation rates went up by 0.19 and 0.79 percentage point respectively.”
He added that the National Consumer Price index (CPI) is the measure of the average price level of selected goods and services in the country while the Inflation rate is the percentage change between the CPIs of any two periods, which could be monthly, tri-monthly or 12 (dodeca) monthly, which is also known as the year-on-year (YOY) rate that is mostly considered for economic decision making and macroeconomic analyses because it compares the current situation with one year back.
The Inflation rate is important because it affects the consumption pattern, consumers, producers and policies of government and development partners, he closed.