The resumption of consumption and the need for businesses to rebuild their margins have strong reasons to bring inflation back. Even if economists say this is not going to happen any time soon, the continent should prepare for it. The markets are full of apprehensions because Covid-19 has not yet said its last word. Economists, statisticians, analysts... all remain positive about Africa's growth. But a probable return of inflation awaits the continent, which should anticipate.
Governments have opened the coffers and budget expenditure is becoming more and more important. Debts are piling up. At the same time, households have accumulated considerable savings because they were unable to spend during the lockdown hibernation. If the health situation normalizes, they will refill in shops and restaurants. Entrepreneurs will also take the opportunity to raise prices and restore their margins and cash flow.
Governments should not sleep soundly, because, let us remember that prices in Europe rose against all expectations by 0.9% in January.