Central Bank Governor speaks about rise in price of commodities

Article by: Mariama Dem

The Governor of the Central Bank of The Gambia, Buah Saidy, revealed that consumer price inflation has peaked at 8.2 per cent in July, 2021 from 4.8 percent in the corresponding period a year ago, which attributes to the increase in food prices. This, he said, is a result of the upward trend reflecting a pickup in global food prices and domestic structure.

The Monetary Policy Committee of the Central bank of the Gambia last week convened its quarterly review of economic and financial developments, where the committee decisions judge to be suitable in the current macroeconomic environment.

The Governor of the Central Bank, Buah Saidy, said the rising trend in inflationary pressures for the first seven months of 2021 mainly reflecting a global increase in food prices and the one-off effect of an increase in the education index in October, 2020. ‘’The near-term forecast of inflation,’’ he said, ‘’indicated deceleration in the consumer price inflation in the forecast horizon.’’

Governor Saidy noted that price inflation on food and non-alcoholic beverages accelerated to 11.5 per cent during the review period compared to 5.2 per cent a year ago. Non-food’s inflation also rose to 4.5 per cent in July, 2021 up by 0.3 per cent point last year.

Meanwhile, the Monetary Policy Committee after the review decided to maintain the policy rate at 10 per cent, the required reserve at 13 per cent, the interest rate on the standing deposit facility at 3.0 per cent and the standing lending facility at 11.0 per cent.