Africa Data Economy Inflation Mozambique

Mozambique: Inflation of only 0.53 per cent in October

Inflation in Mozambique was just 0.53 per cent in October, according to the latest figures issued by the National Statistics Institute (INE), and based on the consumer price indices for the three largest cities (Maputo, Nampula and Beira).

Inflation for the first ten months of the year was 1.3 per cent, and for the entire past year (1 November 2019 to 31 October 2020) it was 3.2 per cent.

Some prices did rise in October – notably tomatoes (by 6.2 per cent), chicken (1.6 per cent), unprocessed rice (1.3 per cent), and vegetable oil (1.4 per cent).

The price of some products fell over the month – notably onions (down by 2.5 per cent) and fresh fish (0.3 per cent).

Also read: Mozambique: Annual inflation expected to stay at 2.9%

Prices have been stable for the past three years. In not a single month did prices rise by as much as one per cent. 2020 began with slight price rises (0.63 per cent in January, 0.36 per cent in February, 0.22 per cent in March, and 0.52 per cent in April), followed by three months of deflation. Prices fell by 0.6 per cent in May, by 0.55 per cent in June and by 0.2 per cent in July.

The trend to rising inflation resumed again in August – but very modestly. Prices rose by 0.06 per cent in August, 0.32 per cent in September, and now 0.53 per cent in October. At this rate, Mozambique could easily end the year with an inflation rate of under two per cent.

As usual the three cities experienced slightly different inflation rates. The highest rate, of 0.63 per cent, was in Beira, followed by Maputo on 0.57 per cent, and Nampula where the average level of prices only rose by 0.34 per cent.

Source: AIM via Club of Mozambique

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