Mozambique closes 2022 with inflation at 10.28% – A Verdade

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Mozambique closes 2022 with inflation at 10.28% – A Verdade

2:09 CAT | 16 Jan 2023

In 2022, Mozambique recorded the highest inflation since the illegal debt crisis, with “a price increase of around 10.28%”.

The National Institute of Statistics (INE) on Tuesday (10-01) revealed that, “taking the 12-month average inflation as a reference, in 2022 the country recorded a price increase of around 10.2%. The Transport and Food and Non-Alcoholic Beverages sectors were the most prominent, increasing by around 16.83% and 12.89%, respectively”.

The 10.28% figure is the highest average inflation recorded since 2017, at the height of Mozambique’s ‘hidden debt’ crisis, which triggered the suspension of International Monetary Fund (IMF) funding and culminated in the unsustainability of the country’s public debt and its suspension from foreign non-concessionary credit. Inflation that year reached 15.11% .

Inflation for 2022 was almost double that forecast by the government, which had expected only 5.3%. The government forecasts that the cost of living will remain high in 2023, predicting inflation for the year of 11.5%.

The INE, which in November changed its methodology for calculating the Consumer Price Index (CPI) by revising downwards the reference weights in use since 1989, made known that: “the data collected last December, in the cities of Maputo, Beira, Nampula, Quelimane, Tete, Chimoio, Xai-xai and in Inhambane province, when compared with the previous month, indicate that the country recorded inflation of around 1.35%”.

“The Food and Non-Alcoholic Beverages division was the highlight, contributing to the total monthly change with about 1.22 positive percentage points (pp). Analyzing the monthly change by product, it is worth highlighting the increase in the prices of tomatoes (10.0%), coconuts (14.7%), onions (13.0%), horse mackerel (2.9%), corn in grain (6.4%), live chicken (4.2%) and fresh fish (1.8%). These contributed to the total monthly change with around 0.89pp positive,” the INE details in CPI for December, 2022.

By Adérito Caldeira

No ano de 2022, classificado pelo Presidente Filipe #Nyusi como de “estabilização e de renovação face aos desafios”, #Moçambique registou a inflação mais alta desde a crise das dívidas ilegais, com “um aumento de preços na ordem 10,28 por cento” https://t.co/TLiNxcLap8 pic.twitter.com/inIXp7hcKu

— Jornal a Verdade (@verdademz) January 16, 2023