Guinea inflation hits single digits for first time in 4 years

CONAKRY, July 25 Fri Jul 25, 2014 1:53pm EDT

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CONAKRY, July 25 (Reuters) - Guinea's inflation rate dipped to 9.9 percent in May, the central bank said, the first time it has dropped into single digits since 2010.

The May figure is the latest available and was confirmed by international consulting firm KPMG, according to Luceny Nabe, central bank governor, who spoke on television late on Thursday.

Nabe said inflation, which was around 21 percent in 2011 and fell to around 13 percent in 2012, was likely to fall further, reaching 9.6 percent in the coming months.

Guinea has endured decades of political instability and misrule that have left the West African state one of the world's poorest despite its vast, untapped reserves of minerals, especially iron ore.

President Alpha Conde won a 2010 election and secured just over $2 billion in debt relief in 2012. However, a review of mining contracts has dampened investor enthusiasm for a number of projects that require large amounts spent on infrastructure. (Reporting by Saliou Samb; Writing by David Lewis; Editing by Daniel Flynn)

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