Mozambican government lowers official food prices

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Mozambican government lowers official food prices

8:04 CAT | 15 Apr 2016

The Mozambican government has decided to lower the reference price of some fresh food products in order to mitigate the effects of the drought in southern Africa and the devaluation of the metical, a government source has told Lusa.

Tomatoes, potatoes and onions have seen the most significant reductions, following meetings with food importers’ associations. The price of tomatoes was cut by 44.4 percent, potatoes by 42.3 percent and onions 24 percent .

Reference prices for white cabbage, peppers, carrots, eggs, garlic, cabbage, cucumber, beets, squash and lettuce, mainly imported from South Africa, were also cut.

The sharp devaluation of the metical and drought in southern Africa, including South Africa, the largest supplier of basic goods in the region, and have pushed food prices in Mozambique up, prompting the government to exercise greater vigilance against speculation.

National Statistics Institute (INE) data indicates first quarter inflation in Mozambique of 6.34 percent, above the government average 2016 inflation target of 5.6 percent.

“In the first quarter of the year, the country recorded a price increase in the order of 6.34 percent. The sectors of electricity and non-alcoholic beverages dictated the trend of this period, contributing to the total accumulated inflation with about 5.29 positive percentage points,” the latest INE consumer price index reports.

Inflation for the same period in 2015 was 2.96 percentage points less at 3.48 percent. March this year recorded inflation of 1.33 percent, down 0.91 percentage points from February.

Source: Lusa