ARTICLE AD BOX
(Business in Cameroon) - The National Statistics Agency (INS) reports in its Q4 2022 Industrial Producer Price Index (IPPI) that production costs for industrial firms in Cameroon rose 8.4% year-on-year during the period. Although this rate remains high compared to 2021, it is lower than the increments recorded in previous quarters of 2022. Over the first and second quarters, for example, the costs increased by 16% and 13.6% yoy, respectively.
INS blamed the steep increase in production prices last year on the Russia-Ukraine conflict. This crisis has exacerbated the effects of the post-Covid period, causing a spike in sea freight costs and raw material prices. Consequently, local companies are experiencing a significant increase in the cost of importing raw materials, leading to a surge in production costs and ultimately, consumer prices.
Because of this situation, inflation in Cameroon reached 6.3% in 2022, more than double the 3% threshold allowed in the CEMAC.
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