Burundi’s Inflation Drops to 3.1% in July

{{Burundi’s year–on-year inflation rate declined to 3.1 percent in July from 3.3 percent in June as food price inflation slowed, official data showed on Wednesday.}}

Food is the major component to measure inflation in the small east African country of nearly 10 million people.

The inflation rate for food eased to 1.4 percent for the year ending July 2014 from 1.8 percent for the year ended June, the Institute of Economic Studies and Statistics (ISTEEBU) said in a report.

The International Monetary Fund (IMF) has previously said inflation in the coffee producer nation has been declining aided by moderating international food and fuel prices and stable monetary conditions.

Although the IMF sees economic growth in landlocked country picking up to about 4.7 percent in 2014 against 4.5 percent in 2013, it says the medium-term economic outlook remains difficult. Downside risks arise from political uncertainties ahead of 2015 elections and vulnerabilities to external shocks given Burundi’s narrow export base.

reuters