Senegal’s annual inflation rate decreased to 0.6% in February 2025 from 1.8% in January, primarily due to reduced price increases in food, housing, and health. Monthly consumer prices fell 0.6%, reversing the prior rise of 1.1%.

In February 2025, Senegal witnessed a decline in its annual inflation rate, which eased to 0.6% from January’s peak of 1.8%, marking an eight-month high. This reduction is predominantly attributed to slower price hikes in several sectors including food and non-alcoholic beverages at 0.6% compared to 3% in January, along with housing and utilities at 0.8%, down from 1.1%. Health care costs also witnessed a drop from 1.2% to 0.8%, and restaurant and hotel prices decreased slightly from 2.2% to 2%.

Conversely, there was an increase in prices for transport at 1%, up from 0.9%. Notably, alcoholic beverages and tobacco saw a substantial rise at 10.2%, escalating from January’s 6.1%. Additionally, personal care, social security, and miscellaneous goods recorded a slight recovery, moving to 0.1% from a previous -0.4%.

On a month-to-month basis, consumer prices fell by 0.6% in February, reversing the previous month’s increase of 1.1%. This trend suggests a significant shift in the economic landscape, potentially easing pressures on consumers.

In summary, Senegal’s inflation rate experienced a notable decrease in February 2025, primarily driven by a slowdown in price growth across key sectors such as food, housing, and health care. While some categories, particularly transport and alcoholic beverages, experienced price increases, the overall monthly decline in consumer prices indicates a cooling of inflationary pressure. This marks a significant shift compared to the previous month’s inflationary peak.

Original Source: www.tradingview.com