By the third week of June 2020, prices of various consumable goods in markets across the Democratic Republic of Congo slightly decreased, leading to an inflation drop of 0,52% in the Capital Kinshasa and 0,53% nationally. This when compared to the previous week.
However the results had an insignificant impact on the monthly inflation change, which currently stands at 8,6% in Kinshasa and 8,2% nationally. This is against the 6,1% recorded in Kinshasa and 5,6% nationally, in the month of May 2020.
Main reason attributed to the sharp rise in the prices of consumable goods has been the depreciation of the Congolese franc, which has lost almost 25% of its value.
In the beginning of 2020 the Congolese franc traded at 1650 to the US dollar, six months later the same dollar will cost you 1920 Congolese franc.
Since the country relies heavily on imports, the restrictions on global trade due to the corronavirus pandemic, has increased the cost of access to foreign currency.
But government has taken some intervention measures to reduce the negative economic impact, such as supplying main staple goods on the market at fixed and affordable rates; forcing competitors to also reduce prices.
In the southern part the country, the provincial authorities in Haut-Katanga have given support to local farmers, which has boosted local productivity and reduced reliance of export.
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