Macroeconomic Forecast Cameroon

March 2008 | Macroeconomic Forecasts

On the back of surging oil and food prices, we have revised up our year-end inflation forecast to 4.5% y-o-y in 2008 (up from our previous projection of 2.0% y-o-y), which marks a significant uptick from just 2.5% y-o-y in 2007. Indeed, rising cereal prices, one of the main drivers of food price inflation throughout the region, increased by almost 90% in 2007 and by almost 30% year-to-date at the end of February 2008. With further spikes in food and oil prices in the pipeline, we believe that domestic inflationary pressures will remain dominant over the medium term, but forecast a softening to 3.5% y-o-y by end-2009.

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