Angola’s inflation rate rises in May after two consecutive monthly falls

12 June 2007

Luanda, Angola, 12 June – Consumer prices in Angola increased in May, after a downward trend felt in the two previous months, according to figures from Angola’s National Statistic Institute (INE), published Monday in the Angolan press.

If this trend is maintained, the Angolan government will be unable to meet its target of ending 2007 with an inflation rate of 10 percent, taking into consideration that year on year inflation has remained stable at over 12 percent.

In May, the year on year rate was 12.37 percent.

However, it is still too early to understand the effects of the measures implemented by the National Bank of Angola (BNA), in May, to slow the rise in inflation, by selling dollars, which raised the value of the local currency (kwanza).

The BNA hopes that, as Angola’s economy is mainly an importer, a string currency will contribute to making foreign products cheaper, helping to slow price rises or even reducing them.

According to INE, the general consumer price index for Luanda (used to calculate inflation) rose 0.88 percent in May, after in March rising by 0.80 percent and 0.78 percent in April. (macauhub)