Country Report Cameroon May 2011

Outlook for 2011-12: Inflation

Owing to Cameroon's heavy dependence on imported food and fuel, consumer price inflation is affected greatly by movements in global prices for those commodities. World oil prices will increase by 27% and food and beverages by 29% in 2011 before falling back in 2012. Moreover, investment and spending will generate domestic inflationary pressure, despite attempts by the government to control prices through ceilings. We forecast average inflation rising to 3.4% in 2011 before falling back slightly, to 3%, in 2012.

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