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Inflation is a global phenomenon affecting everyone across the world, particularly people in the poorer regions of Africa. There are a few reasons for this adverse impact
Inflation is a global phenomenon affecting everyone across the world, particularly people in the poorer regions of Africa. There are a few reasons for this adverse impact. Foremost is the cut in the remittances to poorer countries because of the erosion in the earning capacity of the people working in other parts of the world. Higher prices to be paid by the migrants towards living costs African migrants working in developed countries considerably reduce their disposable income, consequently affecting their remittances. Inflation isn’t impacting people equally. For those with a large number of dependents, the higher prices are pinching families at home and abroad.
According to some estimates, a staggering 71 million more people around the world experience poverty as a result of higher food and energy prices, mostly contributed by the Russian attack on Ukraine. The supply side of the grains produced in the Black sea regions has been disrupted, creating not only shortages but also galloping prices, which in turn reflect on the rate of inflation.
The International Monetary Fund estimates that global inflation will peak at 9.5% this year. But that is only a global average. For poorer countries in Africa, the vault of inflation will be much higher, triggered by other reasons including floods, droughts, and other vagaries of nature. In Somalia,drought and conflict have forced 1 million people to flee their homes. Many countries complain that the drought and floods this time were much more severe than the previous years.
Read Also:
https://trendsnafrica.com/traders-in-ghana-protests-price-spiral/
https://trendsnafrica.com/ukraine-promises-more-wheat-for-africa-global-ties/
The U.N. says half a million children are at risk of death due to malnutrition or famine. Inflation in Egypt has climbed to around 16% as the value of the local currency has dropped, making life miserable for millions of Egyptians living in poverty. Everyone is staring at the possibility of resolving this issue at the earliest, but hardly one can see any light at the end of the tunnel.
