Fourth consecutive month of deflation

Maputo, 16 Aug (AIM) – In July, prices fell in Mozambique for the fourth consecutive month, according to figures published by the National Statistics Institute (INE), based on the consumer price indices for the three largest cities (Maputo, Nampula and Beira).

Over the month, the general level of prices fell by an average of 0.24 per cent. This followed deflation of 0.52 per cent in June, 0.31 per cent in May and of 0.03 per cent in April.

Inflation over the first seven months of the year was 2.28 per cent. Annual inflation (1 August 2020 to 31 July 2021) was 5.48 per cent.

The goods whose prices fell most in July were cassava flour (down by 14.7 per cent), lettuce (-14.1 per cent), cabbage (- 10.7 per cent), tomatoes (- 3.8 per cent), and fresh fish (- 1.6 per cent).

A few goods rose in price during the month, notably lemons (up by 24.1 per cent), charcoal (1.9 per cent), frozen fish (1.5 per cent), vegetable oil (0.8 per cent), and dried fish (0.5 per cent).

The level of deflation was not the same in the three cities. The sharpest fall in prices was in Beira (- 0.47 per cent), followed by Nampula (- 0.29 per cent), and Maputo (- 0.13 per cent).

The pattern of inflation/deflation this year is a familiar one. Prices rise in the first quarter of the year, and then fall as from April, as the harvest comes in. Towards the end of the year, as the festive season approaches, prices can be expected to rise again.
(AIM)