The Harmonized Index of Consumer Prices (HICP) is an indicator that makes it possible to assess price stability, one of the leading convergence criteria adopted for WAEMU member countries.
It is used to measure changes in the prices of a basket of goods and services consumed by households in the WAEMU zone. Its analysis accounts for either an increase or a decrease in consumer prices, and in either case allows for the quantification of price changes.
In December 2020, the HICP stood at 105.5 in the WAEMU zone, down 0.3% from its November 2020 level and up 2.2% from its December 2019 level [WAEMU (2021)].
The decline in the general price level in the Union in December 2020 compared to November 2020 is related to the price level declines in the following countries : Mali (-2%), Benin (-1.7%), Burkina Faso (-1.6%), Senegal (-0.7%) and Niger (-0.1%). These are countries for which there has been a fall in the price level of products within the "Food and Non-Alcoholic Beverages" functions. On the other hand, the opposite effect is noted for Côte d'Ivoire, Guinea Bissau and Togo, which experienced an increase in the price level within the "food and non-alcoholic beverages" functions.
We note that there is an effect of the closest neighbor of the price level from the East to the West of the WAEMU, which can be explained by the presence of similarities in several states (see figure).
It should be noted, however, that for the Union as a whole, inflation is 2.1% in 2020, a level below the 3% threshold, which allows member countries to meet the convergence criterion on price stability.
CJEA