Burundi Inflation Falls to 8.7%, 15 Months After Peak
Burundi's annual inflation dropped to 8.7% in July 2026, a sharp fall from the 45.5% peak in April 2025. The decline reflects tighter budget policy and a better harvest, though the parallel exchange rate still distorts prices. The post Burundi Inflation Falls to 8.7%, 15 Months After Peak appeared first on The Rio Times .
Annual inflation in Burundi fell to 8.7% in July 2026, a significant decrease from its peak of 45.5% in April 2025. This marks a drop from 34% in 2025 to the current 8.7%, according to the national statistics institute, INSBU. The 2025 average annual inflation rate was 34%, up from 20.2% in 2024, with projections for 2026 ranging from 14.5% to 22.1%.
The decline in inflation is attributed to stricter budget discipline, reduced central bank financing, and lower foreign exchange pressure from gold and coffee exports. However, the parallel exchange rate, which can be double the official rate, indicates that real inflation may be higher for consumers. Households are still grappling with high food and fuel costs, with foreign reserves only covering 1.4 months of imports.
Despite the economic growth of 4.1% in 2024, the growth outlook for 2025 is estimated at 4.6% by the AfDB, 4.2% by the IMF, and 4.0% by the World Bank. The IMF, World Bank, and AfDB all project slower growth for 2026. The country's current account deficit is expected to narrow in 2026, but remains a significant concern, with public debt reaching 42% of GDP according to the IMF and 67.1% according to the World Bank.
Foreign reserves are projected to rise to about US$500 million, or 2.8 months of imports, by the medium term. The IMF expects reserves to reach this level, while the World Bank anticipates a smaller improvement, resulting in 6% of GDP in 2026. The parallel exchange rate, which has narrowed since late 2025, continues to be a factor in the perception of inflation, highlighting the gap between official statistics and daily living conditions.
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