By Marcus Bangura
In 2023, it was reported that Sierra Leone inflation rate increased to 47.64% and by December 2024, Government authorities alluded that the national inflation rate had decreased by 1.63% , falling to 13.78% from 15.41% in November. As of February 2025, Sierra Leone authorities claims there has been a notable decline in inflation rate. If the aforementioned is impeccable, then it marks a significant improvement compared to 47.64% in January 2023.
Be it as it may, the reduction in inflation should reflects stabilization in key economic sectors, providing much-needed relief to consumers who have faced prolonged economic pressures. However, challenges persist. However, citizens are questioning the government’s ability to control inflation, which is not only an economic challenge but also a political one. As frustration grows, the Bio-led Government risks losing public trust due to broken promises and accomplishments. Experts argue that this situation is a reminder that inflation is not just an economic issue; it is a social one that can fuel political unrest if not addressed adequately. The peaceful protest of August 10, which turned bloody and disastrous is a clear example to the assertion above.
By and large, one of the most visible impacts of inflation in Sierra Leone is the rising cost of food- rice, palm oil, and fish have become increasingly expensive, making it difficult for many families to afford nutritious meals. This surge in food prices has contributed to rising malnutrition rates, and food insecurity is becoming an urgent concern, despite the government’s ambitious “FEED SALONE” project aimed at tackling hunger. Given that agriculture is a key sector of the economy, one might expect food prices to remain stable. However, Sierra Leoneans are finding their essential foods increasingly unaffordable. For many families, a simple meal has become a luxury, and hunger is increasingly a common companion.
Moreover, the continuous devaluation of the Leone has exacerbated economic difficulties for many Sierras Leoneans, pushing the country further into financial instability, despite government claims to stabilizing the economy. The persistent weakening of the national currency against the US dollar has led to a surge in the cost of living, worsening hardships for ordinary citizens and businesses alike. One of the most immediate consequences of the Leone’s depreciation is the rise in prices of essential goods and services. With Sierra Leone being heavily reliant on imports, the weakening of the local currency means that importing food, fuel, and medical supplies has become more expensive. The devaluation of the Leone, in addition to the Finance Act has hikes the cost of goods and services in Sierra Leone. As it is in 2025, the price of building materials like cement, iron rod among others have been skyrocketed , not to say about basic gods and services. As a result, businesses pass these costs on to consumers, leading to inflationary pressures that reduce the purchasing power of the average citizen. Households now struggle to afford basic necessities, and many are forced to make difficult decisions on prioritizing their limited income.
The growing national debt further complicates the situation, as loan repayments in foreign currency deflates the country’s reserves, leaving little room for economic recovery efforts. The foreign currency shortage is driven by declining export revenues and rising national debt, has made it increasingly difficult for businesses to access the dollars needed for trade. The scarcity of foreign exchange has fuelled a thriving black market, where exchange rates are significantly higher than the official rate. This parallel market further weakens the Leone, as businesses and individuals’ resort to informal channels to obtain foreign currency at exorbitant rates, exacerbating economic instability.
The rising cost of living, coupled with stagnant wages, has led to reduced purchasing power for many Sierras Leoneans. Wages have not kept pace with inflation, making it harder for people to stretch their income to cover basic expenses. This has resulted in a decline in the standard of living for many citizens. As formal sector wages stagnate and living costs rise, many people have turned to informal markets, where prices can fluctuate unpredictably, and goods may vary in quality. This unregulated economy further complicates the financial challenges faced by households.
Utility bills have also contributed to inflation in Sierra Leone, with rising costs for electricity, water, and gas pushing up the overall cost of living. As utility prices increase, businesses face higher production costs, which they often pass on to consumers through higher prices. These further fuels inflation, making everyday goods and services even more expensive. Small and medium-sized enterprises (SMEs), which are the backbone of Sierra Leone’s economy, are particularly vulnerable to rising utility costs. Unlike larger corporations, SMEs have less capacity to absorb these increased costs, forcing them to raise prices, reduce production, or cut jobs, all of which contribute to inflationary pressures.
As the Leone continues to lose value, many citizens have turned to informal markets to secure goods at lower prices, though this often comes at the cost of inconsistent quality and unpredictable availability. The rise of a parallel economy has created a challenging landscape where consumers must navigate inflated prices and market uncertainty, further straining household budgets.
In all of these, Government claims of interventions in fuel and electricity in respect of stabilizing the economy by reducing fuel subsidies and increasing electricity subsidies. However, it goes without saying that the interventions to ease the financial burden in some sectors have had limited impact in controlling inflation; as the roof leaks more than ever.
Until meaningful economic reforms are implemented, the devaluation of the Leone will continue to affect inflation and inflict severe hardship on the people of Sierra Leone. Without decisive action, inflation will persist, businesses will struggle, and the cost of living will remain a burden on the nation’s most vulnerable populations.
