Rise in cost of living in Somalia (Dec 2018- Dec 2023)

[Thegoodshepherd]

Source: https://fsnau.org/sectors/markets

Although Somalia is a heavily dollarized economy, it is experiencing inflation that is significantly higher than what you would expect from a dollarized economy.
US CPI rose 22% in the same time period.
15 of the 18 regions are above that benchmark, some by more than 40%!
Somalia has all of the downsides of dollarization with none of the upsides.
I have no idea how this is possible.

 

[johnsepei5]

View attachment 314975

View attachment 314974

Source: https://fsnau.org/sectors/markets

Although Somalia is a heavily dollarized economy, it is experiencing inflation that is significantly higher than what you would expect from a dollarized economy.
US CPI rose 22% in the same time period.
15 of the 18 regions are above that benchmark, some by more than 40%!
Somalia has all of the downsides of dollarization with none of the upsides.
I have no idea how this is possible.

could it be because we import everything even fruits

 

[Ximan iyo Xadeed]

View attachment 314975

View attachment 314974

Source: https://fsnau.org/sectors/markets

Although Somalia is a heavily dollarized economy, it is experiencing inflation that is significantly higher than what you would expect from a dollarized economy.
US CPI rose 22% in the same time period.
15 of the 18 regions are above that benchmark, some by more than 40%!
Somalia has all of the downsides of dollarization with none of the upsides.
I have no idea how this is possible.

Sool and Sanaag are the most expensive

 

[Thegoodshepherd]

Sool and Sanaag are the most expensive

Sool is likely expensive due to long term insecurity and Sanaag due to the lack of any roads while having a largely rural/nomadic population. But these are just wild guesses.

Very concerning. People are paying way too much for the basics. This is the kind of thing where gov intervention in markets can be hugely beneficial. The gov can import in large quantities and sell to the people at a price that recoups transport costs. It would not even cost anything in net. We lack competent leadership.

 

[Three Moons]

The FGS should be creating a professional brochure of all the sectors entrepreneurs could invest in with high ROIs and hand it out to major companies and high net worth individuals. It’s ridiculous that Somalia spends billions on annual imports, when that figure could be reduced significantly through local production. Over $108 million a year in pasta products is imported from Turkey alone, forget all the other countries that pasta is also imported from, which is several hundred millions of dollars more of lost hard currency. The new Podravaka pasta factory in Croatia only cost €15 million to set up, HSM has spent more on his global trips than that;

Get one in each major city connected to a small power plant, and you have already succeeded in keeping a huge volume of hard currency within the country.

 

[Burqad]

this is the effect of deflation that comes from dollarization and oversupply of American money without any investment opportunities . When I was in Bari 8 years ago lunch cost 9,000-20,000 shillings (0.3-0.9 cents), now it costs 12.2 dollars.

 

[mohamedismail]

Baay, Gedo and Awdal have had the most severe rises. What is the reason behind this?

 

[Killamenace78]

could it be because we import everything even fruits

I was watching this African American guy who visited Mogadishu(Somalia) he went to a fruit stand and literally everything was imported even the apples and oranges from places like South Africa and Kenya the only thing the Somali guy had on display that was local was the bananas very sad thing wllhi

 

[Burqad]

I was watching this African American guy who visited Mogadishu(Somalia) he went to a fruit stand and literally everything was imported even the apples and oranges from places like South Africa and Kenya the only thing the Somali guy had on display that was local was the bananas very sad thing wllhi

Apples and oranges don’t grow in tropical areas?