Statistical institutes regularly publish an inflation rate calculated using a representative basket of goods and services. This figure serves as a benchmark for monetary authorities, businesses, and markets. However, for a large proportion of households, their perception doesn't always match the average increase shown. The impression of a sharper rise in the cost of living fuels a growing gap between the official indicator and everyday experience.

The explanation lies primarily in the composition of the price index basket. It is based on an average consumption pattern. However, low-income households spend a much larger share of their income on food, transportation, and energy. When these items increase faster than average, perceived inflation becomes higher than measured inflation.

Between 2022 and 2023, the global surge in cereal and vegetable oil prices—reaching a historic peak in March 2022 before a gradual but incomplete decline in 2023—resulted in a significant increase in the cost of imported rice, wheat, and oil on the Senegalese market. According to FAO and World Bank data, the global food price index reached its highest level since 2011 in 2022, before falling back while remaining above its pre-crisis levels.

Meanwhile, the sharp rise in international oil prices in 2022, followed by a relative easing in 2023, led to higher energy prices. Even when governments partially offset these increases through subsidies, the indirect effects spread to transportation and distribution costs. For households, a significant portion of whose spending is devoted to urban transportation and food, the impact is immediate.

The geographical dimension also exacerbates the discrepancy. Housing costs in some urban areas have risen faster than average inflation, particularly in capital cities and large metropolitan areas where land pressure is structurally high. Housing represents a significant portion of urban spending, but its impact is felt more acutely than the aggregate index suggests.

Perceived inflation is also linked to the frequency of purchases. Food and transportation are paid for daily or weekly. Repeated fluctuations in these items have a greater impact than the relative stability of goods purchased only occasionally.

This discrepancy does not mean that the official statistics are wrong. They adhere to a harmonized methodology. However, they reflect a national average, whereas purchasing power is experienced at the household level. Understanding this distinction helps explain why a moderate inflation rate can coexist with a widespread feeling of a decline in living standards.