Mozambique’s inflation jumps to 11.25 percent in January

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Mozambique’s National Statistics Institute (INE) says inflation in January accelerated to 11.25 percent year-on-year up from 10.55 percent in December, pushed by the higher cost of electricity and non-alcoholic beverages. INE says this is still a high rate for a single month, and clearly compromises the government’s target for an inflation rate for all of 2016 of no more than 5.6 per cent.

Most of the price increases in January were for foodstuffs and the main increases noted were for maize which went up 3.2 per cent, cowpeas 22.5 per cent, rice 13 per cent, tomatoes 11.5 per cent, coconuts 10.2 per cent, maize flour 6.7 per cent and onions 5.7 per cent.

According to the agency, other items in the package of goods and services used to calculate the consumer price index also rose in price, but very slightly – for example, transport by 0.03 per cent, health by 0.04 per cent, education by 0.11 per cent, and clothing and footwear by 0.18 per cent.

Inflation varied between the three cities. Beira saw the sharpest rise in prices of 3.53 per cent, followed by Nampula 2.83 per cent, and Maputo 1.97 per cent.

Source: StarAfrica