Determinants of Inflation in Sub-Saharan Africa: A Systematic Review

Abstract

Macroeconomic stability is the central aim of policymakers of most nations. Inflation is considered a crucial element of Macroeconomic stability. Empirical evidence confirmed the existence of a long-run relationship between inflation and other macroeconomic variables. The major objective of the study is to investigate the main determinants of inflation in sub-Saharan African countries. The study used a systematic review technique. Therefore in-depth literature review has been done on 11 studies undertaken in 9 sub-Saharan African countries. Accordingly, among the eight variables used for analysis, GDP, Broad money supply, Real exchange rate, and interest rate, is the main source of inflation. On the other hand import prices, Inflation expectations, public expenditure, and oil prices are found to determine inflation slightly.

Keywords: Determinant, Inflation, Sub-Saharan Africa

DOI: 10.7176/DCS/11-3-02

Publication date:March 31^st 2021