Country Report Senegal March 2011

Outlook for 2011-12: Inflation

In June 2010 the consumer price index basket was rebased to 2008 and reweighted. Food's weighting has shrunk from 40.3% to 32.9% but remains overwhelmingly responsible for the acceleration in the rate of price growth. Rising global food prices are the key driver, and will also be felt through an enlarged weighting of the restaurants sub-index. Higher domestic food production, government subsidies and new price caps on several essential goods may still help to anchor local food prices but could be undermined by sustained weakness of the CFA franc and rocketing global commodity prices. The government's withdrawal of some groundnut sector subsidies will put pressure on industrial-but not consumer-prices. Average inflation is set to accelerate from 1.2% in 2010 to an estimated 4% in 2011, easing to 2.9% in 2012.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT