Mozambique witnessed a reduction in the inflation rate, which fell to 3% in May, according to data released by the National Statistics Institute (INE). The Consumer Price Index (CPI) report highlighted price increases in the education, restaurant and food sectors, while the country experienced a general decrease in prices during the period under review.
According to the National Statistics Institute (INE), inflation in Mozambique fell to 3% in May, representing a drop compared to the previous months, which recorded rates of 4.19% in January, 4% in February, 3.03% in March and 3.26% in April.
The CPI report highlighted that the education, catering, hotels, cafés and similar divisions, as well as food and non-alcoholic drinks, were the sectors that showed the biggest price increases, ranging from 10.57%, 5.06% and 4.91%, respectively.
In addition, the document revealed a drop in prices in May, with a decrease of 0.38% compared to the previous month, when there was an increase of 0.37% in April.
Previous INE data indicated that year-on-year inflation in Mozambique, measured over 12 months, was 5.30% in 2023, with an annual average of 7.1%, exceeding government forecasts. The country’s economic growth in 2023 was 5%, driven by various sectors, including Extractive Industries, Tourism, Agriculture, Transportation and Communications.
According to Ludovina Bernardo, spokesperson for the Executive, the policies and reforms implemented during the year, especially those aimed at boosting the private sector and attracting investment, contributed significantly to this growth. Average inflation stood at 7.1%, in contrast to the initial forecast of 11.5%, demonstrating a positive trend in the economy. Net International Reserves also remained robust, exceeding projections and strengthening the country’s economic credibility.
The fall in the inflation rate in May reflects an evolving economic dynamic in Mozambique, with policies and reforms aimed at promoting economic growth and stability. The government remains committed to strengthening the country’s economy, boosting key sectors and ensuring effective management of financial resources for the benefit of the entire population.
