Country Report Benin April 2008

Outlook for 2008-09: Inflation

The BCEAO's tight monetary policy will help to contain inflation over the fore-cast period. Inflation slowed to an average of 1.3% in 2007, owing mainly to the good harvest (food accounts for the largest share of the consumer price index). Assuming continued normal food production, average inflation is expected to remain at the same level in 2008, before rising slightly, to 2%, in 2009.

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