Annual CPI declines by 6.93% in first half of 2025

Annual CPI declines by 6.93% in first half of 2025
Annual Consumer Price Inflation (CPI) chart for the first half of the year 2025

The latest inflation data released by Statistics Sierra Leone reveals a significant turning point in the nation’s economic landscape for the first half of 2025.

As of June 2025, the national annual Consumer Price Inflation (CPI) has settled at 7.10 percent, reflecting a notable decrease of 0.45 percentage points from 7.55 percent in May 2025. This positive trend offers hope for consumers who have been grappling with rising prices affecting their daily lives.

This steady decline trend in the national annual CPI from January at 14.03 percent to June 2025 at 7.10 percent added up to 6.93 percent decrease in the first half of the year.

The annual national CPI kicked off the year at 14.03 percent in January, representing a 0.25 percentage point increase from 13.78 percent in December 2024. However, this trend did not persist.

February brought a pivotal turn as inflation dropped to 13.09 percent, a decrease of 0.94 percentage points from January. This trend continued into March, where the inflation rate further declined to 10.71 percent, down 2.38 percentage points, reflecting improved price stability in essential goods and services.

April reinforced this positive trajectory with inflation reducing to 9.38 percent, which is a 1.33 percentage point dip from March. By May 2025, the rate experienced a more significant drop to 7.55 percent, marking a 1.83 percentage point reduction from the previous month.

June 2025 continued the downward movement with inflation registering at 7.10 percent, reflecting a decrease of 0.45 percentage points from May.

This sustained reduction in inflation over these months showcases a significant turnaround for the economy, which at the beginning of the year had been grappling with inflation rates exceeding 14 percent.

The easing of inflation rates can be attributed to various factors, including improved supply chain management, increased agricultural output, and effective monetary policies implemented by the government.

Throughout the first half of 2025, inflation dynamics have exhibited variability, which showcased the pressure consumers faced. As the figures gradually dipped to 7.55 percent in May before settling at 7.10 percent in June, such fluctuations illustrate the challenges and complexities of managing price stability in a recovering economy.

Notably, the decline in food prices, an essential component of the CPI has been crucial in driving down overall inflation, as food typically accounts for a significant portion of household expenditure.

The noteworthy decline In inflation offers a glimmer of hope as the nation continues its efforts toward economic recovery. It suggests that ongoing measures to control rising costs by the government and central bank may be beginning to yield desired effects.

The Importance of implementing conducive monetary policies and initiatives to bolster the agriculture sector, which significantly impacts food prices, cannot be overstated. Continued vigilance and proactive strategies will be paramount to sustain this downward trend in inflation and enhance the purchasing power of households across Sierra Leone.

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