Mozambique has announced the agreement it "tried to avoid but had to accept" - economist
Lusa (File photo)
Although the governor of the Bank of Mozambique has announced the end of the crisis, for people living from honest, low-paid work, prices remain unsustainable, A Verdade reports.
This is confirmed by the Consumer Price Index (CPI) issued by the Mozambican National Statistics Office (INE), which shows that inflation rose again in February, not by a lot, it is true, but it is still being influenced by the increase in food prices, especially tomatoes, onions, cabbage and lettuce.
According to an INE statement, based on data collected in the cities of Maputo, Beira and Nampula, inflation in February was 0.36 percent higher than in January. Food and non-alcoholic beverage were worst affected, with price rising by 0.20 pp (percentage points).
“From the analysis of monthly inflation by product, we can highlight the increase in prices of charcoal (4.9 percent), tomato (3.8 percent), second-hand vehicles (1.5 percent ), onion (5.2 percent), cabbage (8.3 percent), fresh shrimp (13.7 percent) and lettuce (8.3 percent). These products were responsible for about 0.32 pp in total monthly inflation,” the document details.
The National Statistics Institute notes that in the first two months of the year, Mozambique recorded a price increase of 0.76 percent. “The food and non-alcoholic beverages division was mainly responsible for the general upward trend in the prices, contributing approximately 0.49 pp positive.”
“Disaggregating the inflation accumulated by product highlights increases in the prices of coconut, lettuce, charcoal, cabbage, private primary education of the first cycle, onion and fresh fish. These contributed with positive 0.47pp to the total accumulated inflation,” the INE concludes.
At a time when negotiations for wage increases have started for the approximately two per cent of Mozambicans who have a regular job, it should be noted that the price of the CPI food basket has risen by more than 22 percent since the beginning of the crisis in April 2016. Salary increases, A Verdade concludes, should at least cover this loss of food purchasing power.Source: A Verdade
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