Maputo — Inflation in Mozambique, as measured by the combined consumer price indices of the three major cities, Maputo, Beira and Nampula, was 0.03 per cent in July, according to figures released by the National Statistics Institute (INE) on Tuesday.

This follows a period of deflation. February to June saw five months of falling prices. The rise (or fall) in the combined consumer price index for the three cities was 0.64 per cent in January, minus 0.24 per cent in February, minus 0.21 per cent in March, minus 0.24 per cent in April, minus 0.53 per cent in May, and minus 0.34 per cent in June.

As a result, the accumulated inflation rate for January to July is still negative, standing at minus 0.48 per cent, according to the INE.

As for inflation over the past year - from August 2011 to July 2012 - that is calculated at just 1.88 per cent, which gives Mozambique the lowest inflation rate in the SADC (Southern African Development Community) region.

The average 12 monthly inflation rate over the past year is 5.49 per cent.

Despite the very slight overall increase in the price of the basket of goods and services on which the consumer price index is based, the prices of foodstuffs continued to fall in July - which is normal for this time of year.