The National Statistics Institute (INE) announced that average annual inflation in Mozambique reached 5.36% in November, reversing the downward trend seen in recent months. According to INE, the increase is mainly driven by the rise in food prices.
This acceleration represents the second consecutive month of increase, since in October inflation had already risen to 4.75%. The INE’s record indicates that 12-month inflation in Mozambique began to fall in September, reaching 4.63% – the sixth consecutive month of year-on-year inflation reduction and a drop of 0.30 percentage points compared to August, reaching lows since January 2021.
The increase seen in November, according to INE, is mainly due to the rise in food prices. This phenomenon highlights the sensitivity of the inflation index to variations in the food sector, indicating an economic challenge to be closely monitored by the authorities.
Inflation, a crucial indicator for economic stability, reflects the variation in the prices of goods and services over time. The impact of increases in food prices not only directly affects consumers’ purchasing power, but can also influence the government’s economic policies.
This scenario underscores the importance of precautionary measures and effective economic strategies to mitigate the adverse effects of inflation. Economic authorities and policymakers are challenged to find a balance between controlling inflation and promoting sustainable economic growth.
As Mozambique faces a dynamic economic environment, the continuous monitoring of inflation and the implementation of appropriate measures are crucial to ensure a resilient and balanced economy, capable of dealing with the challenges inherent in price volatility.
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