CBG SAYS IRAN WAR PUSHES INFLATION TO 6.7 PER CENT
The Central Bank of The Gambia has reported an uptick in inflation caused by the on-going US-Israel-Iran war which elevated food and non-food prices in the country reflecting increases in the prices of meat, fish, fruits, nuts, transport, housing, utilities and selected service related categories.
Addressing journalists at the MPC press conference in Banjul yesterday, Governor Buah Saidy disclosed that headline inflation has increased from 6.4 per cent in January 2026 to 7.0 per cent in April 2026 while food inflation rose moderately to 6.7 per cent from 6.2 per cent in January. Non-food inflation on the other hand accelerated to 7.2 per cent from 6.4 per cent in January 2026.
According to Governor Saidy, further assessment indicates that underlying inflationary pressures have also strengthened with Core 1 inflation which strips out volatile energy prices increasing to 6.6 per cent in April 2026 from 3.4 per cent in January 2026. Similarly Core 2 inflation which further excludes volatile food prices rose to 6.5 per cent from 4.6 per cent in January 2026.
He said these findings suggested that inflationary pressures are becoming more broad based as The Gambia remains vulnerable to imported inflation through higher fuel, transport and exchange rate pass-through effects tilting the risks to the domestic inflation outlook upside.
Despite these pressures, the CBG maintained its policy rate at 14 per cent, maintained the required reserve ratio of commercial banks at 13 per cent while the interest rate on the standing deposit facility was maintained at 5 per cent and the interest rate on the standing lending facility remained at 15 per cent.
According to governor Saidy, the bank believe the current trend of inflation is “temporary” and is “manageable” adding that they are also optimistic that the US-Israel-Iran war will soon end which will significantly ease price pressures.
Real GDP growth
He said the bank’s latest forecast round projects real GDP growth at 5.7 per cent in 2026 representing a 0.5 percentage points downward revision precipitated by the adverse impacts of the war in the Middle East.
Balance of payment
The governor added that amid rising import demand and elevated global uncertainties surrounding prices and trade conditions, The Gambia’s balance of payments estimates indicate a weakened external position with current account deficit widening to US$20.83 million in the first quarter of 2026 compared to US$13.19 million in the same period of 2025.
The goods account deficit also widened in the first quarter of 2026 to US$284.37 million from US$248.07 million in the corresponding period of 2025 reflecting a 20.6 per cent increase in total imports.
Domestic debt stock
According to governor Saidy, the government’s domestic debt increased to D53.3 billion accounting 24.0 per cent of GDP at end of March 2026 from D51.99 billion, representing 23.4 per cent of GDP in the corresponding period in 2025. He said the composition of domestic debt remained concentrated in short-term instruments accounting for 54.8 per cent of the portfolio.
Source: The Standard
