Inflation in Africa has quickened in recent months as supply-side cost pressures increase. Weaker exchange rates have also contributed to the acceleration in inflation in Africa. To assess the degree to which inflation in Africa has accelerated, we have averaged inflation out of some key African economies, including Kenya, Ghana, Mozambique, Nigeria, Zambia and Egypt. Since the start of the year, average inflation in Africa has risen by 4ppt to 14.49 percent in June — levels not seen since 2017. The acceleration in inflation in Africa has resulted in many central banks hiking interest rates in an attempt to get inflation under control. Central banks will have to play a delicate balancing act of reining in inflation while not putting too much pressure on their respective economies, which are still recovering from the devastating effects of the COVID-19 pandemic.
