Inflation in Sierra Leone: Drivers and Policy Responses

Zsolt Kondrát, Rosalind Mowatt () and Peter Wankuru ()
Additional contact information
Zsolt Kondrát: Consultant
Rosalind Mowatt: International Monetary Fund, Institute for Capacity Development
Peter Wankuru: IMF

Chapter Chapter 9 in Navigating Economic Storms and Emerging from Fragility, 2026, pp 99-111 from Springer

Abstract: Abstract This chapter explores inflation dynamics in Sierra Leone, a country that has historically experienced higher-than-average inflation rates. The Sierra Leonean government’s 2024–2030 Medium-Term National Development Plan (MTNDP) aims to achieve single-digit inflation, recognizing the adverse effects of inflation on economic growth and the cost of living, especially for the impoverished population. The chapter delves into the factors contributing to inflation, including the high exchange rate pass-through, and assesses the monetary policy framework’s effectiveness in addressing inflationary pressures. The analysis reveals that Sierra Leone’s inflation is significantly influenced by exogenous shocks, particularly in the short run, and underscores the importance of a proactive and forward-looking monetary policy. The findings suggest that enhancing the monetary policy framework, ensuring consistency in exchange rate policy, reducing reliance on food imports, and promoting fiscal prudence are critical for mitigating inflation risks and achieving macroeconomic stability in Sierra Leone.

Keywords: Inflation volatility; Exchange rate pass-through; Monetary policy rate (MPR); Food imports; Reserve money targeting; Fiscal deficits; Price shocks (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-92147-6_9

Ordering information: This item can be ordered from
http://www.springer.com/9783031921476

DOI: 10.1007/978-3-031-92147-6_9

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().