CPI Forecast

Prepared by Somali Researchers Association (SRA)

Overview:
Somalia’s inflation has been rising steadily over the past two months, as shown by official CPI figures.

  • September 2025: +0.6% MoM
  • October 2025: +0.8% MoM
  • November 2025 Forecast: +0.9% MoM

This increase is driven by continued pressure in food prices, housing and utilities, and restaurant services.

What Is Driving Prices Up?

  • Housing & Utilities: Strongest monthly increase in October (+1.4%), expected to continue.
  • Food Prices: Two months of positive growth, the largest weight in the CPI basket.
  • Household Goods & Restaurants: Both increasing steadily.

Expected Year-on-Year Inflation:

If November rises as forecast, annual inflation will likely shift from 3.9% → 4.1–4.2%.

Why This Matters to the Public:

A 0.9% rise means:

  • Households may face slightly higher living costs.
  • Businesses should prepare for higher operating expenses.
  • Policymakers need to monitor inflation risks closely.