By Nasratu Kargbo
Data presented by Statistics Sierra Leone on the monthly inflation rate has indicated that transportation and narcotics amongst other things highly contributed to increase in inflation for the month July. According to the Deputy Statistician General, Andrew Bob Johnny, the inflation rate for July 2021 stood at 10.50%, with an increase of 0.30% compared to 10.20% in June 2021.
Johnny said there is a term in statistics called inflation short, such as the increase in the price of fuel that has corresponding effect in the prices of goods.
Asked what could be the reason for high inflation in the regions as compared to Freetown, he said being a national data they cannot pinpoint all the reasons, explaining that they would have to look at all items in the different regions and in Freetown to know the cause.
However, he said holistically transportation is the main cause of inflation, explaining that due to the increase in the price of fuel the transportation fare from one region to the other must have increased and must affected the regions more than Freetown, the capital which recorded the lowest inflation rate.
Speaking on importation, Johnny emphasized that Sierra Leone imports most of the products used in the country. “Each time we import we import part of the inflation of that country to our own country” adding to the existing situation already in the country.
However apart from transportation, alcoholic beverage and tobacco are considered to be upward movers; this is because the rates of inflation of these goods and services have increased over 7%. In June 2021 transportation was at 3.67% and increase 10.85% in July 2021, which means the inflation rate increased by 7.18%.
There is a high increase in alcoholic beverage, tobacco and narcotics, it hiked by 7.34%. In June the rate was at 12.18% and in July 19.52%.
The Director of National Account Economic Statistics Mwaluma Andrew Bryma Gegbe said fuel could be a parent factor but also named other contributory factors such as water and electricity on a limited scale.
When asked how they determine the items to include in the basket, Gegbe explained that the institution conducts every five years the Sierra Leone Integrated Household Survey also known as the Living Standard Survey. He explained that during such an exercise they go to households and investigate their consumption patterns and the services they receive over a period of time, and use that data to determine what should be included in the basket.
The director explained that some of the contributing factors to the high inflation rates are housing, water, electricity, gas and other fuels increasing from 8.37% in June 2021 to 8.75% in July 2021, and the inflation rate increasing by 0.38%. He further explained that another factor that increased the inflation is furniture, household equipment and household maintenance; an increase from 11.12% in June 2021 to 15.82% in July, marking an inflation rate increase of 4.70%.
Food and non-alcoholic beverages declined; in June 2021 the rate was at 17.12% and declined in July to 15.40%. Recreation and culture has also reduced by 0.13%, from 1.54 % in June 2021 to 1.41 in July 2021.
However, the Principal Statistician Isata Allieu- Kekura said they cannot foresee whether or not inflation would increase or decrease. She said they analyzed the data sent to them, she said apart from transport being a key driver for inflation, she stated that seasonal commodities contributed in the change.
The country started recording higher digits since April and has been recording a higher inflation since then. In April 9.6%, May 9.8%, June 10.2 and in July 10.5%. 10.5% is the average inflation rate for all the goods and services.
Copyright © 2021 Politico Online (20/08/21)
