Sierra Leone’s inflation rate climbed back into double digits in March, driven by sharp increases in transport and housing-related costs, official data showed, signalling renewed pressure on household budgets and policymakers.
Figures released by Statistics Sierra Leone showed annual consumer inflation rising to 10.24 percent in March, up from 8.05 percent in February. The consumer price index (CPI) increased to 264.14 from 258.26, marking the first return to double-digit inflation since March 2025.
The latest data point to a broadening of price pressures beyond food, with non-food inflation emerging as the main driver of the increase.
Transport costs recorded one of the steepest rises, with inflation in the category surging to 22.27 percent from 9.10 percent a month earlier. Analysts said higher fuel prices and increased operating costs for public transport likely contributed to the spike.
Housing and utilities also saw significant increases. Inflation for housing, water, electricity, gas and fuels rose sharply to 45.02 percent from 35.89 percent, underscoring persistent cost pressures in essential services.
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“These figures highlight the growing burden of non-food expenses on households,” a Freetown-based economist said, noting that rising utility and transport costs tend to have a ripple effect across the wider economy.
Other sectors also recorded notable increases. Health-related inflation rose to 11.54 percent, while prices in restaurants and hotels climbed to 12.44 percent, reflecting higher operational costs and sustained demand in urban areas.
In contrast, food inflation remained relatively subdued. Prices in the food category edged up slightly to 4.58 percent from 4.38 percent, suggesting that supply conditions for basic food items may have remained stable during the period.
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However, the divergence between food and non-food inflation highlights a shift in the drivers of overall price growth.
Non-food inflation jumped to 14.68 percent from 10.95 percent, indicating that cost pressures are becoming more widespread across different sectors of the economy.
Some categories showed signs of easing. Inflation for furnishings and household maintenance slowed to 2.72 percent from 6.64 percent, while alcoholic beverages and tobacco remained in negative territory at -1.83 percent.
Regional data showed disparities in price movements across the country. Inflation remained elevated in urban centres and northern regions, with the Western Area recording 14.63 percent and the Northern region 17.33 percent, both above the national average.
Economists said the regional variation reflects differences in supply chains, transportation costs and local demand conditions.
The return to double-digit inflation is likely to pose challenges for policymakers, particularly in balancing efforts to support economic growth while containing price increases.
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Rising inflation can erode purchasing power, especially for low- and middle-income households, and may prompt tighter monetary policy measures if the trend persists.
“The key concern is whether these pressures will continue in the coming months,” the economist said. “If transport and energy costs remain elevated, inflation could stay high or even increase further.”
The data come at a time when Sierra Leone’s economy is navigating external and domestic pressures, including fluctuations in global commodity prices and exchange rate movements.
While recent signs of easing foreign exchange pressures have offered some optimism, analysts warn that sustained inflation could offset those gains by increasing the cost of living and complicating economic management.
For now, the March figures underline the persistence of structural cost pressures in the economy, with transport and housing emerging as key drivers behind the renewed rise in inflation.
