Mozambique: Inflation expected to rise to 5.3% this year – NKC African Economics

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Mozambique: Inflation expected to rise to 5.3% this year – NKC African Economics

8:05 CAT | 18 Aug 2021

File photo: Lusa

Consulting firm NKC African Economics on Monday estimated that inflation in Mozambique for the year as a whole will stand at 5.3%, above the 3.1% recorded in 2020 and in line with the 5.2% in the first half of the year.

“Inflation averaged 5.2% in the first half of the year, up from 3.2% in the same period last year; we anticipate that weak domestic demand will contain inflationary pressures this year,” according to analysts of the African branch of British consultancy Oxford Economics.

In the note, sent to clients and to which Lusa had access, the analysts noted that inflation stood at 5.5% in July compared to the same month of 2020, an equal rate to that recorded in June and May.

“Monthly, inflation was down 0.2% in July [compared to the previous month], after a decrease of 0.5% in June compared to May, influenced by the index of alcoholic and non-alcoholic beverages,” the analysis said.

“The factors that will influence inflation in the short term will be rising oil prices and disruptions in supply chains, and we also anticipate that the global oil price will increase significantly this year and should underpin the rise in inflation in the short term,” the analysts said, adding that they do not anticipate any change in monetary policy this year.

Source: Lusa