Bank of Mozambique says government measures to reduce cost of living don’t go far enough

12 January 2011

Maputo, Mozambique, 12 Jan – the measures adopted by the Mozambican government to reduce the cost of living in the country are “insufficient” although they made it possible to relieve pressure on prices, the Bank of Mozambique said in a statement issued on its website.

In the statement the central bank said that measures were “not sufficient to cancel out price rises in the holiday period,” but recognised that the set of measures “of a fiscal, budgetary and monetary nature to reduce the cost of living applied in September 2010 were important to relieve pressure on prices.”

On 1 and 2 September, 2010, there were protests against the increased cost of living in the cities of Maputo and Matola, in southern Mozambique. Clashes resulted in the death of at least 18 people and injury of a further 500 and 300 people were arrested.

In response, the Mozambican government decided to freeze the prices of essential good until the end of the year and in December extended the measure until the end of the first quarter of 2011.

Figures published by Mozambique’s National Statistics Institute showed that in December, 2010, the Consumer Price Index in the city of Maputo posted a rise of 3.48 percent, exceeding that seen in the same month of the last three years and November 2010. (macauhub)