A possible rise in fuel and telecommunications services, coupled with climate shocks, could result in a rise in the cost of living in the coming months, according to the Economic Report and Inflation Outlook released a few days ago by the Bank of Mozambique.
“The possible worsening of fiscal pressure, the possible greater severity of climatic shocks and possible adjustments to telecommunications and fuel prices are also risk factors for the projections,” wrote the regulatory institution.
It should be noted that inflation stood at 4.2% in January and 4.0% in February. But by December this year, it could reach 5.37%, according to “O País”.
Still internally, the central bank highlights the continued high pressure on the state budget; the occurrence of climatic shocks and the prevalence of military instability in Cabo Delgado.
“The assessment of the risks and uncertainties associated with inflation projections remains favorable in the medium term. Possible factors for containing inflation include fiscal consolidation efforts and the less serious impact of geopolitical conflicts on the logistics chain and on commodity prices on the international market,” writes the WB.
The report also predicts that economic activity will continue to expand at moderate levels, driven by the performance of the extractive industry, whose production has increased significantly with the production of natural gas on the Coral Sul FLNG platform in the Rovuma basin.
