PRICE OF FLOUR EXPLODES IN GUINEA

UNCLAS CONAKRY 000062 SIPDIS SIPDIS DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA COMMERCE FOR SALIHA LOUCIF E.O. 12598: N/A TAGS: ECIN EFIN ECON GV SUBJECT: PRICE OF FLOUR EXPLODES IN GUINEA ¶1. Post has independently confirmed the press report of a significant increase in the price of flour this week. The local press reported that the price of the 50 kg sack of flour went from 34.80 USD (150,000 GnF) to 48.83 USD (210,000 GnF) in just one week. This represents a 40% increase in the price of flour, and if projections are accurate, a reported increase in the price of a loaf of bread from 27 cents USD (1200 GnF) to 37 cents USD (1600 GnF.) ¶2. COMMENT. This is a significant event on the streets in Guinea, as bread and rice are basic staples of the Guinean diet. With a per capita income of about 1 USD per day, any increase in the cost of staple goods forces consumers to choose between competing priorities in their daily struggle to live here in Conakry. Economic hardship is a persistent underlying problem contributing to the country's continued political tensions. END COMMENT. CARTER