Mozambique inflation reaches 14 percent in 2005

16 January 2006

Maputo, Mozambique, 16 Jan – Mozambique’s annual year-on-year inflation rate totaled 14 percent in 2005 compared to a government forecast of 7.5 percent, Mozambique’s National Statistics Institute (INE) said Friday.

In 2004 annual inflation totaled 9.3 percent.

According to INE, the first few months of 2005 were encouraging as prices, such as those for fuel, remained stable or even fell.

However, in the final two months of the year prices peaked and rose 2.8 percent in November (the highest monthly rate since 2001) and 5.5 percent in December.

In December the main difficulty was the Food category which increased by 8.5 percent while in the previous 11 months it had accumulated a price increase of 6.3 percent, INE said.

The government forecast for 2006 inflation stands at 7 percent.