( 3 minutes read)
· Burundi in the grip of a spiraling inflation thanks to skyrocketing prices of sugar, beer and oil
· The unwarranted price spiral of these goods has created public concern amidst disruptions caused by the Covid-19 pandemic
· Sugar has become a pricey commodity. It used to be sold for 100 Burundian francs for a small quantity; but now it is 200 Burundian Franc
Burundi in the grip of a spiraling inflation thanks to skyrocketing prices of sugar, beer and oil. The unwarranted price spiral of these goods has created public concern amidst disruptions caused by the Covid-19 pandemic.
Some of the essential goods have become scarce prompting long queues at stores. There are items that have disappeared from shop shelves. Local production is in disarray. Importers are not very keen to bring goods for sale because of the low purchasing power of the people.
Sugar has become a pricey commodity. It used to be sold for 100 Burundian francs for a small quantity; but now it is 200 Burundian Franc. People are concerned about the high cost of living and are anticipating further rise in the prices. However, economists are alleging that there is large scale hoarding of essential goods for profiteering from shortages. They suggest that importers should be incentivized to bring in scarce commodities.
Burundi’s US$3 billion economy is one of the smallest in the world and has been hit by foreign currency shortages. Because of that, the Burundian Franc lost its value. Officially, one dollar is equivalent to about 2,000 Burundian Franc. However, in the parallel (black) market, it goes up to about 2,800 Fbu.
