Togo: Inflation Rate Dips to 3.9% in May, Food Prices Still Rising

Economic governance

Wednesday, 10 July 2024 16:42

Togo: Inflation Rate Dips to 3.9% in May, Food Prices Still Rising

(Togo First) - Inflation in Togo stood at 3.9% in May 2024, down from 4.1% in April. The figure was disclosed by the country’s statistics institute, the INSEED.

The INSEED also reported that the National Harmonized Index of Consumer Prices (INHPC), which tracks price trends for most consumer products, rose by 1.6% between April and May.

Food Products

The price surge from April to May was mainly driven by increases in food prices ("Food products and non-alcoholic beverages" +4.3%), transport costs ("Transportation" +0.5%), and restaurant spending ("Restaurants and Hotels" +0.2%).

Notable increases include corn (+11.2%), imported rice (+6.5%), local long-grain rice (+4.2%), and other staple foods like ripe plantains, fresh sweet potatoes, yams, manioc, tomatoes, onions, and carrots, which saw price indices rise by more than 10% month-on-month.

This increase was slightly offset by a decline in housing costs ("Housing, water, gas, electricity, and other fuels" fell by -0.9%).

Quarterly Increase

Comparing May 2024 with February 2024, the general price level is up 3.5%, mainly driven by rising food prices.

Overall Slump

However, inflation in Togo is expected to continue falling compared to levels seen since 2023. According to IMF projections, inflation should drop to less than 2% between 2025 and 2028, provided there is a favorable agricultural outlook, adequate food market supply, and continued government measures to contain prices.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

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In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

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GETTING ELECTRICITY (more info)

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Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.