TOGO – Togo has experienced a remarkable decline in its inflation rate for August with the food and non-alcoholic beverage sector leading this significant drop, providing relief for consumers.
Data released by the country’s Institute for Statistics, Demographic and Economic Studies (INSEED) revealed that the overall inflation rate fell to 6.6% in August, marking a departure from the consecutive increases observed since April.
The most notable reduction in inflation was observed in the “Food and non-alcoholic beverages” sector, with prices decreasing by 5.3%. This sector is of great significance to consumers, as it encompasses essential everyday products.
Among the specific food products that saw significant price decreases were tubers, vegetables, fish, and various staple foods. These reductions contributed to an overall decline in the cost of living for many Togolese households.
Excluding food products, the general price level saw a marginal drop of 0.2%, reflecting a broader trend of moderating inflation in the country. Core inflation, which excludes energy and fresh products, also decreased by 0.3%.
The reduction in inflation, particularly in the food and non-alcoholic beverage sector, is a welcome development for Togolese consumers who have been grappling with rising prices in recent months.
While the specific initiatives driving this reduction have not been detailed in the report, it is likely a combination of factors, including improved agricultural output and government policies aimed at addressing the high cost of living in the country.
The decline in inflation in the sector is expected to have a positive impact on households’ purchasing power and contribute to improved economic conditions for consumers.
Although there was an improvement in price pressures between July and August, the general price level was up by 3.8% compared to the same period in 2022. This increase was attributed to rising costs in the post-Covid period.
In May 2023, Togo recorded an inflation rate of 5.8%, a notable improvement from the 8% rate seen a year earlier. The favorable trends are attributed to two key factors.
First, the improved results of the previous agricultural campaign in 2022 contributed to a better supply in the market due to increased agricultural output.
Togo’s agricultural production in 2022 demonstrated positive growth compared to the previous year, with increased production of key staples such as corn, millet, sorghum, and rice. This increase in food production helped alleviate some of the inflationary pressures.
Additionally, the government implemented a range of initiatives aimed at addressing the high cost of living in the country.
These measures included expanding the value-added tax (VAT) exemption from school canteens to university and company canteens, reducing the patent tax rate, and introducing various social measures in 2022 to improve living conditions for the population in the face of rising costs.
