Sierra Leone’s inflation rose modestly in December as seasonal spikes in housing and utility costs pushed prices higher, even as food costs eased, highlighting the sensitivity of household budgets to festive-period demand, official data showed on Thursday.
The country’s Consumer Price Index (CPI) climbed to 247.65 in December from 246.09 in November, with a month-on-month inflation rate of 0.63 percent, up from 0.40 percent in November, according to Statistics Sierra Leone.
Analysts said the increase was largely driven by a sharp rise in the housing, water, electricity, gas, and other fuels category, which carries an 8.9 percent weight in the consumer basket. Prices in this category surged to 11.39 percent in December from 0.23 percent the previous month, reflecting higher utility consumption during the holiday season and typical year-end rental adjustments.
“The uptick paints a picture of holiday-driven pressures, with housing and utility costs stealing the show,” the statistical agency noted.
Other discretionary categories also recorded higher prices. Clothing and footwear rose 1.19 percent in December after declining 1.03% in November, while transport costs edged higher, likely reflecting increased travel and festive activity.
This inflationary pressure, however, was partly offset by a decline in essential goods. Food and non-alcoholic beverages, which make up 40.3 percent of the consumer basket, fell 1.32 percent in December, reversing a 0.65% increase in November. Economists described this as a welcome respite for households after months of rising food costs.
Education services also saw a sharp slowdown, dropping 8.93 percentage points to 0.03%, likely due to cyclical timing of school fee payments.
“The data shows a tale of two economies: one strained by festive-period service costs and discretionary spending, the other benefiting from easing food prices,” said economist Mohamed Kamara, based in Freetown.
The December figures suggest that while temporary demand pressures can create price volatility, underlying inflationary trends may be stabilising. Analysts will be closely watching January’s data to determine whether the modest overall increase continues or if the drop in food prices helps contain broader inflation.
Sierra Leone’s economy faces structural challenges, including high energy costs, fluctuating food prices, and dependence on imports, which make the country vulnerable to external shocks. Despite these pressures, policymakers have emphasised that the year-end inflation spike is largely seasonal and temporary, reflecting normal festive-period consumption patterns rather than systemic price pressures.
The government has previously implemented measures aimed at stabilising utility and transport costs, including subsidies and regulatory interventions, to reduce the impact on households. Analysts say sustaining such interventions, alongside monitoring food supply chains, will be crucial to maintaining moderate inflation in the coming months.
Sierra Leone’s modest December inflation comes amid broader regional concerns about rising living costs in West Africa, where seasonal spending and global commodity price fluctuations often drive temporary spikes in consumer prices.
Economists expect that if food prices continue to ease and energy costs stabilise, overall inflation may moderate in early 2026, allowing households some relief after the festive season.
