Mozambique: Third consecutive month of deflation

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Mozambique: Third consecutive month of deflation

5:39 CAT | 09 Jul 2021

in file CoM

In June, Mozambique experienced its third consecutive month of falling prices, according to the latest figures published by the National Statistics Institute (INE), based on the consumer price indices for the three largest cities (Maputo, Nampula and Beira).

Over the month, the general level of prices fell by an average of 0.52 per cent. This follows price falls of 0.31 per cent in May and of 0.03 per cent in April.

Inflation over the first six months of the year was 2.53 per cent. Annual inflation (1 July 2020 to 30 June 2021) was 5.52 per cent.

The goods whose prices fell most in June were lettuce (down by 23.8 per cent), cabbage (13.4 per cent), onions (11.3 per cent), tomatoes (8.7 per cent), coconuts (8.6 per cent), dried fish (8.4 per cent).

A few foodstuffs rose in price during the month, notably rice (up by 1.3 per cent), fresh fish (1.2 per cent), cassava leaves (29.5 per cent), and pumpkin leaves (10.4 per cent).

The level of deflation was not the same in the three cities. The greatest deflation was in Beira, where prices fell by 0.97 per cent, followed by Nampula (0.63 per cent), and Maputo (0.31 per cent).

The pattern of inflation/deflation this year is a familiar one. Prices rise in the first quarter of the year, and then fall as from April, as the harvest comes in. Towards the end of the year, as the festive season approaches, prices can be expected to rise again.

Source: AIM