By Foday Moriba Conteh
Statistics Sierra Leone (Stats-SL), the institution that is charged with the responsibility of compiling statistical data in the country has on Wednesday 18th August, 2021 during a well-attended press held at its headquarters on Tower Hill in Freetown released the Consumer Price Index for July 2021.
It must be noted that in Sierra Leone, prices are collected for 437 items at prevailing retail market prices from six (6) markets in Freetown and three (3) markets each in Bo, Kenema, Makeni and Kono for weekly prices and prices are also collected from other outlets on a monthly basis as their prices are less likely to fluctuate weekly.
The Modified Laspeyres formula is used to compute indices and is classified according to the Classification of Individual Consumption by Purpose with 12 functions.
Giving highlights on the CPI for July, the Deputy Statistician General, Statistics Sierra Leone, Andrew Bob Johnny, said that the National Inflation Rate for July 2021 CPI show that annual national inflation (year-on-year) stood at 10.50 percent, up by 0.30 percentage point from 10.20 percent in June 2021; and the monthly inflation is 1.53 percent; up by 0.88 percentage points from 0.65 percent in June, 2021.
He pointed out that the national Consumer Price Index (CPI) is the measure of the average price level of selected goods and services in the country and that the inflation rate is the percentage change between the CPIs of any two periods; which could be monthly, 3-monthly or 12-monthly also known as year on-year.
Andrew Bob Johnny added that the year on year rate is the mostly considered for economic decision making and macroeconomic analyses because it compares current situation with one year back, furthering that inflation rate is important to gauge because it affects the consumption pattern of consumers, production, cost of producers and policies of government and development partners.
The Deputy Statistician General revealed that alcoholic beverages, tobacco and narcotics increased from 12.18 percent in June 2021 to 19.52 percent in July 2021 and the inflation rate increased by 7.34 percentage point’s year-on-year. He added that transport increased from 3.67 percent in June 2021 to 10.85 percent in July 2021 and the inflation rate increased by 7.18 percentage points year-on-year.
In summary, he said that July year-on-year national inflation rate continued in double digit and is above the estimates of the Western region but below Eastern, Northern and Southern regional estimates; only Western region (8.73 percent) registered a single digit. Food inflation rate moderated in July and was surpassed by inflation rates of alcoholic beverages, tobacco and narcotics and furniture, household equipment and household maintenance, adding that non-food inflation increased by 1.85 percentage points and was propelled by alcoholic beverages, tobacco ,narcotics and transport.
Andrew Bob Johnny concluded by stating that July year-on-year national inflation rate indicates an increase u by 0.30 percentage point from 10.20 percent in June 2021.
