In a positive turn for the economy, Sierra Leone’s annual inflation rate fell to 9.38% in April 2025, marking the first time in nearly four years that inflation has dropped into single digits.
This represents a significant 1.33 percentage point decline from March’s 10.71%—a welcome relief for households and businesses across the country.
Regional Trends Show Broad Improvement
Data from the April 2025 Consumer Price Index (CPI) report highlight that inflation fell across all, but one of the country’s five regions. The Northern region saw the largest improvement, plummeting from 10.94% in March to just 6.00% in April. Similarly, the North-West region dropped from 9.04% to 6.28%, the Southern region from 7.43% to 6.39%, and the Western region from 13.02% to 12.46%. In contrast, the Eastern region experienced a slight increase from 7.87% to 8.17%.
Single-Digit Inflation Across Most Regions
The April 2025 CPI report also revealed that headline inflation rates fell in seven out of twelve COICOP divisions, reflecting a broad-based deceleration. Four out of five regions now report single-digit inflation rates, suggesting that the cost-of-living pressures may be easing for many Sierra Leoneans. Notably, food inflation has hit its lowest level in five years, with its impact on overall inflation reduced by a factor of 4.28 over the past 12 months.
National Inflation Estimate Remains Above Regional Averages
Despite these gains, the national inflation estimate remains above most regional averages, with the exception of the Western Region. This highlights the continued challenges facing policymakers, and underscores the importance of ongoing monitoring and policy support.
Understanding the CPI
The national CPI measures the average price level of selected goods and services, and is a critical tool for understanding price trends. The year-on-year (YOY) rate, which compares prices from the same month in the previous year, is a key indicator for economic planning and decision-making. In Sierra Leone, CPI data are compiled using prices from 440 items collected across markets in Freetown and other key regions, ensuring comprehensive coverage.
Data Collection and Methodology
Sierra Leone’s CPI indices were rebased to December 2021 to reflect current consumption patterns. Prices are gathered weekly from markets, and monthly from other outlets, with the Modified Laspeyres formula used to compute the indices. Items are categorized using the COICOP classification, ensuring alignment with international standards.
This latest data provides a cautiously optimistic outlook, with inflation showing signs of containment. However, continued vigilance will be essential to ensure that this downward trend is sustained and that economic stability is further consolidated.
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