Many African countries are pressured by high inflation rates, thus causing everything to become expensive.
Business Insider Africa presents Africa’s seven most expensive countries to live in as a result of high inflation rates.
Inflation is measured by the rate at which prices of goods and services increase within a given timeframe.
Global economists told Bloomberg that the biggest danger to the economy in 2022 would be inflation, not the COVID-19 pandemic with its different variants. Now, that’s surprising and quite interesting!
But perhaps that is not much of a surprise after all. Inflation has always been known to be one of the biggest enemies to wealth creation and that is because it silently [but consistently] erodes the value of money. Across Africa, inflation is an ever present problem, although many of those it affects are unawares of it. But they do feel its effect in the form of high prices, expensive food items, etc.
However, this article focuses on seven most expensive African countries owing to their inflation rates. However, before we proceed, we have some more information for you about what inflation is all about.
What is inflation?
According to Investopedia, inflation occurs when there is a significant decline in the purchasing power of a currency. It can be measured by the rate at which the prices of goods and services rose within a particular period. A sharp increase in the cost of raw materials is often one of the primary causes of inflation. A surge in demand for goods and services can also trigger an upsurge in prices, thus leading to high inflation.
Common trend among countries with high inflation rates
One trend that is common among African countries with high inflation rates is that they are mostly import-dependent. When a country imports more than it exports, it inevitably becomes susceptible to various economic challenges, including weak exchange rates and high inflation rate which, in turn, makes everything expensive.
Africa’s most expensive countries due to high inflation
Whereas inflation is a general problem across the continent, some countries have it worse. And living in these countries can be quite expensive.
See the list below and do note that we used data derived from very reliable sources, including Statista, Reuters, Bloomberg etc. Also note that inflation rates are not constant. So, if you are reading this at a later date, chances are the rates might have changed.
1) Sudan: The Republic of Sudan, which is located in the Northeastern part of the continent, has the highest inflation rate on the continent. According to Reuters, the country’s inflation rate stands at a staggering 387.56%.
2) Zimbabwe: At 56% inflation rate according to Bloomberg, Zimbabwe has the second highest in Africa.
3) Ethiopia: This country in the Horn of Africa saw its inflation rate rise to 34.2% in October 2021, according to Reuters. The ongoing war in the country has affected the economy.
4) Angola: Angola has the fourth highest inflation rate in Africa at 29.7%.
5) South Sudan: The inflation rate in this country stands at 29.68%.
6) Zambia: This country has an inflation rate of 16.4% according to Bloomberg.
7) Nigeria: Africa’s biggest economy has an inflation rate of 15.99%.
Business Insider Africa