Mozambique: Inflation continues to fall

Mozambique’s inflation rate in January was 0.64 per cent, according to figures from the National Statistics Institute (INE), released on Tuesday.

The figures are a compilation of the consumer price indices of the three main cities – Maputo, Beira and Nampula.

Inflation has slowed down considerably – the monthly rate in December was 1.38 per cent. The yearly rate has also slowed – total inflation in 2011 was 6.14 per cent, but inflation from February 2011 to January 2012 was 5.12 per cent.

The average annual inflation rate over the past 12 months was 10.24 per cent. This rate, the one normally used by the government, has been falling consistently – it was 13.98 per cent in July 2011, 13.16 per cent in September, and 11.17 per cent in December.

The main contributors to the January inflation were the categories of “housing, water, electricity and gas” and “foodstuffs and non-alcoholic drinks”. In particular, house rents rose by 11.8 per cent, frozen fish by 3.5 per cent, coconuts by 10 per cent, tomatoes by 2.6 per cent, and charcoal by 1.7 per cent.

There was also a significant rise in the price of bicycles (16.4 per cent) and of used cars (6.5 per cent), but these items have a negligible weight in the consumer price index basket of goods and services.

A few items declined in price – notably dried fish, paint and motorcycles.

When the three cities are compared, it turns out that prices were virtually frozen in Nampula, where the January inflation rate was just 0.03 per cent. In Beira, inflation was 1.19 per cent, and in Maputo 0.39 per cent.

Post published in: Africa News

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