Fluctuations in inflation represent a major challenge for the Congolese economy, and July 2024 was no exception to this rule. Indeed, the downward trend observed during this period aroused keen interest in economic and financial circles.
During the month of July in particular, there was a significant decrease in the inflation rate, mainly attributable to the slowdown in price formation, particularly in the agricultural products sector. This trend proved to be sustainable, extending over several consecutive weeks. The figures recently published by the Central Bank of Congo bear witness to this reality, with a weekly inflation rate down for the third consecutive week.
More specifically, during the fourth week of July 2024, the weekly inflation rate stood at 0.13%, down from the previous week which was 0.15%. This development led to a cumulative inflation of 8.45%, a figure indicative of a moderation in inflationary pressures.
Analyzing the consumption components that contributed to weekly inflation, it is noted that food products and non-alcoholic beverages had the greatest impact, accounting for 59.76% of the overall index. Clothing and footwear, leisure and culture, miscellaneous goods and services, furniture, household goods and health-related expenditure also played a significant role, with respective contributions of 12.68%, 5.68%, 5.49% and 4.94%.
Furthermore, it is interesting to note that a downward trend in monthly inflation was also observed in July 2024 compared to the same period in 2023 and June 2024. This decline is partly explained by the stability of the foreign exchange market and the decrease in agricultural product prices since June 2024.
In terms of more global data, the year-on-year inflation rate stood at 15.23%, showing a slight decrease compared to the previous week and a marked improvement compared to the end of 2023. On an annualized basis, the inflation rate reached 15.11%, exceeding the annual target set at 11.3%.
In conclusion, the evolution of inflation in July 2024 in the Democratic Republic of Congo reflects a changing economic situation, marked by price adjustments and a moderation of inflationary pressures. This trend offers encouraging prospects for the country’s economic stability, but requires constant monitoring to ensure a healthy and sustainable economic framework.