Mozambique: Annual inflation rate now over four per cent
Mozambique: Inflation to remain moderate with risk of rising – consultant
8:29 CAT | 29 Dec 2020
File photo: Lusa
NKC African Economics said that inflation will remain moderate in Mozambique, but warned that the risks of rising prices may materialise and will not disappear in the short and medium term.
“The outlook for inflation in 2021 will remain relatively modest, but we are very aware of the risks of rising prices, including the weakening of the local currency, rising energy prices, adverse weather events and disruptive local conflict,” analysts said in a commentary on inflation in Mozambique, which rose 0.66% in November.
“These risks are unlikely to disappear in the short to medium term, which may mean that if there are surprises in inflation, the ability of the monetary authorities to provide relief will be limited,” they added.
Mozambique posted monthly inflation of 0.66% in November, according to data published by the Consumer Price Index (CPI) bulletin of the National Statistics Institute (INE) in mid-month.
Accumulated inflation for 11 months this year stands at 1.97% and year-on-year inflation in November stood at 3.27%.
12-month average inflation stands at 3.14%.
From January to November, prices of horse mackerel, fresh fish, cooking oil, cars (new and used), meals in restaurants and wheat bread were up.
The upward trend in prices, albeit at a slight pace, had already been identified by the Bank of Mozambique and other authorities in the sector.
The conjuncture reflects shocks in the economy caused by the Covid-19 pandemic.
The CPI figures are calculated by INE from price changes of a basket of goods and services, with data collected in Maputo, Beira and Nampula cities.
Source: Lusa
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