Sierra Leone’s national inflation rate experienced a remarkable decline in December 2024, signaling a positive shift in the country’s economic trajectory. According to the latest Consumer Price Index (CPI) report from Statistics Sierra Leone, the inflation rate dropped by 1.63 percentage points, falling to 13.78% from 15.41% recorded in November. This marks a significant improvement and provides much-needed relief to consumers, who have faced prolonged economic pressures.
The decline in inflation reflects a stabilization in key sectors of the economy. The food and non-alcoholic beverages sector, which represents the largest component of the CPI at 40.3%, was instrumental in driving this reduction. Year-on-year inflation in this category fell by 0.84 percentage points, moving from 14.73% in November to 13.89% in December. Analysts attribute this trend to improved agricultural production and a potential cooling of consumer demand as households adjust to evolving economic conditions.
Another sector contributing to the overall decline was housing, water, electricity, gas, and other fuels, which accounts for 8.9% of the CPI. This category saw a significant reduction of 14.04 percentage points, dropping from 26.41% in November to 12.37% in December. The sharp drop in inflation for this sector may be linked to more stable energy prices, better access to essential utilities, and improved supply chain efficiency.
The positive trend was reflected across most regions of the country, with four out of five regions reporting a decline in inflation rates. The Eastern region saw a decrease from 16.52% in November to 14.70% in December, while the Northern region experienced a decline from 17.37% to 13.98%. Similarly, the Southern region’s inflation rate fell from 17.66% to 14.62%, and the Western region recorded a drop from 14.82% to 13.61%. However, the North-west region bucked the trend, showing a slight increase in inflation, rising from 12.19% to 12.31% during the same period.
Overall, the headline year-on-year inflation rate in Sierra Leone exhibited a downward trajectory throughout 2024, reflecting a gradual stabilization of the country’s economy. This trend offers a more optimistic outlook for economic growth and financial stability as the nation continues to implement policies aimed at fostering resilience in its key sectors. The decline in inflation rates across most regions and sectors underscores the importance of continued investment in agriculture, infrastructure, and energy to maintain this momentum and further support households across the country.