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Inflation is a challenge for several African economies in 2025, with growing consumer prices affecting the cost of living, purchasing power, and economic stability.

The International Monetary Fund (IMF) World Economic Outlook report highlights that developing economies, including several countries in Africa, Europe, and the Middle East, are expected to experience double-digit inflation rates.

High inflation in African countries raises concerns over economic stability. Inflation, defined as the prolonged rise in the overall price level of goods and services, affects businesses, households, and consumers. Rising costs outpacing salary growth have increased challenges for people to meet basic needs such as food, shelter, and healthcare.

This situation is particularly severe in countries where a significant portion of the population lives below the poverty line, as it increases economic disparities and poverty levels.

The IMF report shows the need for economic reforms and monetary policies to stabilise prices. Households face reduced purchasing power due to higher prices, while businesses encounter increased operational costs and declining profitability.

According to the IMF, here are the top 10 African countries with projected inflation surges in 2025

1. Sudan – 118.9%
Sudan is expected to have the highest inflation rate on the continent, with consumer prices projected to rise by 118.9% annually. The economic challenges in the country, including currency devaluation and political instability, continue to affect price stability.

2. South Sudan – 79.3%
South Sudan follows closely with an inflation rate of 79.3%. Ongoing recovery from conflict and reliance on imports for basic goods are among the key factors contributing to the surge in consumer prices.

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3. Nigeria – 25.0%
Nigeria, Africa’s largest economy, is projected to experience a 25.0% rise in consumer prices. Currency fluctuations, import dependencies, and policy shifts, including subsidy removals, are driving inflationary pressures.

4. Burundi – 25.0%
Burundi also faces an inflation rate of 25.0%. The rising cost of food and energy continues to challenge households and businesses, with limited access to foreign exchange adding to the pressure.

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5. Zimbabwe – 23.6%

Zimbabwe, long affected by hyperinflation, is projected to see prices rise by 23.6%. Monetary policy adjustments and structural challenges in the agriculture and energy sectors are likely to influence inflation trends.

6. Ethiopia – 23.3%
Ethiopia’s inflation rate is forecast at 23.3%. Disruptions in agricultural production and increasing demand for imported goods contribute to the rising cost of living in the country.

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7. Angola – 21.3%
Angola is projected to record an inflation rate of 21.3%. The country’s dependence on oil revenues and foreign imports plays a significant role in shaping inflationary trends.

8. Egypt – 21.2%
Egypt’s consumer prices are expected to rise by 21.2%. Currency devaluation, rising import costs, and a heavy reliance on food and energy imports have heightened inflationary risks.

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9. Sierra Leone – 18.0%
Sierra Leone’s inflation rate is estimated at 18.0%. Challenges include fluctuations in agricultural output and the rising cost of imported goods, which strain household budgets.

10. Malawi – 15.3%
Malawi closes the list with an inflation rate of 15.3%. Limited agricultural output and increasing energy costs are expected to drive price increases, impacting the cost of basic goods and services.