Spring Meetings

How did the recent disruptions of global supply chains impact inflation in sub-Saharan Africa and what policy implications can we draw? Our research shows that increase in supply chain pressures have a sizeable impact on headline, food, and tradable inflation in sub-Saharan Africa, accounting for almost half of the rise in headline inflation since 2020. Our findings imply that central banks can stabilize inflation more efficiently by monitoring global supply chains and adjusting the monetary policy stance before the disruptions have fully passed through into inflation measures.