Cape Verde: Rate of inflation totals 4.5 percent in 2007

15 January 2008

Praia, Cape Verde, 15 Jan – The rate of inflation in Cape Verde in 2007 totaled 4.5 percent, a fall of 0.9 percentage points against the figure for 2006, the archipelago’s National Statistics Institute (INE) said in Praia.

The “housing and domestic equipment” category of products saw the highest rise (7.2 percent), followed by the categories of “clothing and footwear” (4.9 percent) and “food and drink” (4.9 percent).

According to the government, inflation in 2007 was under pressure from the rise in oil prices, which was added to a new phenomenon related to a hike in the price of cereals due to a lack of stocks driven by high demand and channelling of those products to biofuel production.

The price of food also rose on the archipelago due to a poor farming year.

In 2008, the government expects inflation to fall to between 2 and 3 percent, despite continued external inflationary pressure, as neither oil nor cereal price rises show signs of slowing. (macauhub)