Mozambique’s central bank governor said on Wednesday 2015 inflation will average 7 percent, higher than the forecast 5.6 percent, due to higher food prices.
The southern African nation raised its benchmark lending rates on Monday and said it wants to contain inflation in 2016 after the currency weakened in recent weeks.
Making his end of year address, the bank’s governor Ernesto Gove said many food items were imported from neighbouring South Africa, which impacted inflation.
Mozambique is one of the poorest countries in the world and its metical currency has taken a beating as investors worry about the government’s ability to manage its finances.
Maputo launched an $850 million bond to start state tuna-fishing company Ematum, only for $500 million of the proceeds to be spent on defence.