Mozambique - Consumption & investment falling; small interest rate cut - By Joseph Hanlon
CoM (file photo)
Prices in Mozambique ended 2016 with a cumulative increase of 25.26%, which was one of the highest increases in the cost of living in the country in recent years, according to figures published on Monday in Maputo by the National Statistics Institute (INE).
INE also said that prices rose by 3.47% in December and that the inflation rate measured by the average of the indices of the last 12 months over the preceding 12 months reached 19.85%.
Accumulated inflation, despite its high value, was below the forecasts of the Bank of Mozambique, which initially predicted a price increase of around 30% and later revised this forecast downwards to 27%.
In cumulative terms, the Food and Non-Alcoholic Beverages category was the driving force behind rising prices, accounting for 17.09 percentage points of the total recorded value.
Prices have risen almost every month, except May, and November and December saw the highest prices rises for both food and electricity.
Part of the price increases was due to the devaluation of the national currency, the metical, against the major currencies, including the dollar and the South African rand.Source: Macauhub