Inflation refers to a decline in the purchasing power within a country over time.
It measures how much more expensive a set of commodities and services has become over a defined period, usually a year.
The ineffectiveness of Monetary policy is a primary casue of inflation. Excessive money in circulation to such extents that is not commensurate with the size of the economy leads to diminishing value of a country’s currency. Prices rise and purchasing power declines.
Below is a list of 8 African countries with the highest inflation rates as provided by Statista.
1. Sudan: The Republic of Sudan, which is located in the Northeastern part of the continent, has the highest inflation rate on the continent. According to Reuters, the country’s inflation rate stands at a staggering 387.56%
2. Zimbabwe: At 50%, Zimbabwe’s inflation rate is the second highest on the continent.
3. South Sudan: This country’s inflation rate stands at 40%, making it the third highest in Africa.
4. Ethiopia: This country in the Horn of Africa has an inflation rate of 37.6%.
5. Angola: Angola has the fifth highest inflation rate in Africa at 29.7%.
6. Zambia: This country has an inflation rate of 22.1%.
7. Nigeria: Africa’s biggest economy has an inflation rate of 17.59%.
8. Sierra Leone: Sierra Leone’s inflation rate as at August stood at 10.88%, based on data from the country’s statistics department.