Prices rises in Mozambique higher than initial forecast

18 December 2015

Rising prices in Mozambique, measured by the inflation rate, are expected to end the year in the range of 7 percent to 7.5 percent, exceeding the projected value by two percentage points, the Governor of the Bank of Mozambique said Wednesday in Maputo.

Gove also said that “inflation, measured by the variation of the Consumer Price Index (CPI) of Maputo, went from 1.28 percent in September to 5.04 percent at the end of November 2015,” which is the same across the country, where aggregate CPI reached 6.27 percent by November.

The governor said, however, that he was optimistic about the future, and stressed that the measures taken recently by the central bank to stabilise macroeconomic indicators created potential for a slowdown in price rises in the medium term.

“We don’t want inflation to make the country uncompetitive as an investment destination or to eat away at people’s savings, especially affecting the purchasing power of the poorest people,” said Gove, cited by the Mozambican press.

The Bank of Mozambique, given the devaluation of the national currency against the dollar and the fall in prices of major exports, decided to introduce some corrective measures, including an increase in key interest rates and introduction of limits on spending abroad using debit or credit cards. (macauhub/MZ)