Maputo — The average level of prices in Mozambique fell by 0.38 per cent in May, as inflation turned to deflation, according to the latest figures on inflation issued by the National Statistics Institute (INE).

Inflation in the first five months of the year was 1.42 per cent, caused largely by rises in food prices.

Annual inflation in May (1 June 2023 - 31 May 2024) was 3.07 per cent. This compares with 3.26 per cent in April, 3.03 per cent in March, four per cent in February, and 4.19 per cent in January. Annual inflation is thus gradually declining.

The main price falls in May were for lettuce (down by 25.4 per cent), unprocessed maize (7.9 per cent), cabbage (7.9 per cent), tomatoes (6.3 per cent), onions (5.9 per cent), fresh fish (3.3 per cent), and cement (5.6 per cent).

But some prices went up during the month. Without warning, the authorities allowed the water boards to increase the price of piped water by an average of 21.2 per cent - by far the highest price rise in May.

Other price rises were for okra (7.4 per cent), groundnuts (1.4 per cent), maize flour (0.9 per cent), and butter beans (0.6 per cent).

The city with the lowest rate of inflation in May was Inhambane, where prices fell by 0.9 per cent, followed by Nampula (0.53 per cent), and Maputo (0.51 per cent).

All the cities where the INE collects its data showed price declines. The lowest was Beira where the fall in overall prices was just 0.1 per cent.