6 November 2012

Mozambique: Inflation Remains Low

Maputo — Inflation in Mozambique remained low in October, with prices rising by just 0.33 per cent during the month, as measured by the consumer price indices in three largest cities, Maputo, Beira and Nampula.

According to the figures, released on Tuesday by the National Statistics Institute (INE), in Maputo prices rose in October by 0.27 per cent, in Beira by 0.33 per cent, and in Nampula by 0.42 per cent.

The product that showed the largest price rise was tomatoes (0.2 per cent), followed by fish (0.06 per cent) and maize flour (0.04 per cent). Some foodstuffs showed minor falls in price - thus the price of both onions and coconuts fell by 0.05 per cent.

Taking the year as a whole, inflation remains negative – between January and October, there has been an overall decline in prices (deflation) of 0.11 per cent.

In five of the ten months of this year inflation has been negative. The figures were: January 0.64 per cent, February minus 0.24 per cent, March 0.21 per cent, April minus 0.24 per cent, May minus 0.53 per cent, June minus 0.34 per cent, July 0.03 per cent, August minus 0.02 per cent, September 0.06 per cent, and October 0.33 per cent.

These figures are so small that it has reasonable to say that prices have remained stable throughout this year. This is the lowest inflation Mozambique has recorded since the introduction of structural adjustment measures in 1987.

Inflation from January to October in 2010 was 11.7 per cent, and for the same period in 2011 it was 4.15 per cent.

Yearly inflation – from 1 November 2011 to 31 October 2012 – was 1.8 per cent. Yearly inflation at the end of October 2011 was 9.5 per cent, and at the end of October 2010 it was 15.27 per cent.

Currently, Mozambique is experiencing the lowest inflation of any country in SADC (Southern African Development Community).

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