The rise in inflation in advanced economies has led central banks to express growing concerns in regard to the current price environment. The increase in inflation is more marked and broader in developing economies, particularly Sub Saharan Africa where headline inflation has registered an average of 20.0 percent; the highest rates since the beginning of the current decade.
In these economies, food and fuel make up a larger share of consumption baskets and sustained strong growth has tightened capacity constraints. The major part of the spike in inflation reflects sharp increases in global energy and food commodity prices, and other commodities. In part, the rise in prices was driven by the commodity boom that resulted from both accelerated demand and constrained supply.