Mozambique: Inflation falls to single digits

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Mozambique: Inflation falls to single digits

2:02 CAT | 27 Feb 2023

FILE - For illustration purposes only. [File photo: Lusa]

Despite increases in transport and food prices, which have already in one year increased by 16.71% and 16.06% respectively and for the first time since August 2022, inflation in Mozambique slowed to single digits during the month of January.

The Consumer Price Index (CPI) compiled by the National Institute of Statistics (INE) with “data collected last January, in the cities of Maputo, Beira, Nampula, Quelimane, Tete, Chimoio, Xai-Xai and in Inhambane Province, when compared with those of the previous month, indicate that the country recorded monthly inflation of around 0.98%”, compared to 1.35% in December.

Once again “the food and non-alcoholic beverages division was the highlight, contributing to the total monthly variation with about 0.70 positive percentage points. Analysing the monthly variation by product, it is worth highlighting the increase in the prices of tomatoes (5.9%), coconuts (14.2%), lettuce (25.3%), fresh fish (1.9%), complete meals in restaurants (0.9%), butter beans (2.7%) and grain corn (3.3%). These contributed to the total monthly change with about 0.68 positive percentage points”, the IPC details.

The INE also reveals that “when compared with that for the same period of 2022, the data indicates that the country recorded a price increase of around 9.78%”, compared to 10.28% in December of last year.

“The Transport and Food and Non-alcoholic Beverages divisions were the ones that had the biggest increase in prices, varying with 16.71% and 15.74% respectively,” the report explains.

However, this slowdown in inflation is likely to be temporary, as there are new increases in fares for passenger transport in the pipeline. In addition, some other basic services, such as education and health, have seen their Value Added Tax rate increase, while other products have had the Tax on Specific Consumption revised upwards.

The basic food basket has in one year increased from 30,000 to around 35,000 meticais per month.

By Adérito Caldeira

Source: A Verdade