Inflation Dynamics in Burundi: Challenges and Potential Solutions

Abstract

This study provides a comprehensive analysis of inflation dynamics in Burundi, a country facing long-standing political and economic challenges. Through exploratory review of literature, it examines inflation trends, policy measures, and challenges, while offering potential solutions to combat high inflation in Burundi. Findings reveal periods of high and low inflation influenced by economic and political factors. Despite policy efforts, the country continues to experience volatile and high inflation levels, impacting the economy and citizens negatively. Key challenges include political instability, weak institutions, and external shocks. The study recommends sustained implementation and monitoring of policies promoting financial sector development, enhancing access to finance, and addressing corruption. These measures are vital for achieving stability and prosperity. The study also emphasizes the importance of evidence-based approaches to inflation control. In addition, the study underscores the significance of ongoing policy efforts in achieving economic stability and prosperity in Burundi amidst inflation challenges.

Keywords

• price level
• inflation
• burundi
• monetary policy
• deflation
• policy objectives
• policy designs and consistency
• policy coordination
• formal and informal sectors
• shadow economy
• institutional arrangements