INSBU warns of rising prices and factory slowdown in latest economic outlook

Burundi’s inflation rate soared to 36.9 percent in September 2025, the highest in years, driven by steep increases in food and service prices, according to new data released by the Burundi National Statistics (INSBU).

The official report, published during the 2025 “month of statistics,” highlights a challenging economic landscape marked by surging consumer prices and a downturn in industrial production.

“The national inflation rate remains a key concern as price pressures persist across all major sectors, particularly food, transport and services,” INSBU said in its quarterly economic outlook.

Prices for essential goods surged dramatically like meat rose by 83.9 percent, rice by 32.1 percent, and restaurant and hotel services by 39.5 percent. Transport costs also increased by 23.3 percent, further straining household budgets.

Despite a nominal GDP of 3.9 trillion Burundian francs, real economic growth for the first quarter of 2025 stood at just 1.7 percent, indicating that rising prices rather than increased production are driving much of the economic expansion.

The report attributes the inflationary surge partly to higher import costs and persistent supply chain disruptions affecting agricultural and industrial inputs.

While inflation has eroded purchasing power, the industrial sector has also come under pressure. The INSBU report shows significant declines across key industries: metal manufacturing fell by 38.4 percent, petrochemical and plastic industries by 21.1 percent, and food and tobacco production by 10.3 percent.

“The industrial sector continues to face structural challenges, including energy constraints and high production costs, which limit its capacity to contribute to economic recovery,” INSBU noted.

Analysts say the downturn in manufacturing and energy production including a 9.7 percent drop in electricity, gas and water output could weaken the country’s growth prospects for the rest of the year.

However, the statistical office said it expects a “moderate but sustained growth for the remainder of 2025,” supported by stronger performance in trade, health, and education sectors.

“We count, so that you can decide with full knowledge,” INSBU emphasised in its report, urging policymakers and citizens to use reliable data for informed decision making.

The report underscores the urgency for policy responses to curb inflation and stabilise industrial output as Burundi navigates a period of economic uncertainty.

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