IMF recommends new inflation measurement method for Senegal

The International Monetary Fund (IMF) has recommended that Senegal revise its Consumer Price Index (CPI) methodology to better reflect the cost of living. Specifically, the IMF suggests integrating ‘rental equivalence’ to account for the expenses associated with owner-occupied housing.

This statistical adjustment aims to provide a more accurate measurement of the weight of housing in household expenditures and the real impact on purchasing power. The recommendation focuses on improving statistical measurement and identifying appropriate methods to evaluate price variations in these types of housing, rather than proposing rent caps or price controls.

Senegal’s National Agency of Statistics and Demography (ANSD) has acknowledged the need to refine the treatment of owner-occupied housing to strengthen the robustness of price measurements. This follows a 1,243 billion FCFA financing agreement between Senegal and the IMF spanning three years.