Mozambican Inflation Rate Steady in May


The annual inflation rate in Mozambique was recorded at 2.91 percent in May of 2014, almost unchanged from 2.87 percent in the previous month. A year earlier, the inflation rate was recorded at 4.9 percent.

In May of 2014, the highest upward pressure came from cost of food and non-alcoholic beverages (+4.5 percent yoy). Annual consumer prices slowed in Maputo (3.38 percent in May from 3.6 percent in April) and Nampula (2.97 percent from 3.26 percent), but accelerated in Beira (1.39 percent from -0.17 percent).

On a month-on-month basis, the CPI fell for the first time in 2014 by 0.38 percent in May, compared to a 0.12 percent increase in the previous month, mostly due to a drop in food prices. Among food items, prices declined for tomatoes (-7.5 percent), coconut (-4.4 percent), cabbage (-8.8 percent), coal (-0.8 percent), and corn (-20.8 percent). Additional downward pressures came from prices of housing, water, electricity and gas.

In May, consumer prices fell in all major cities: Maputo (-0.62 percent), Beira (-0.2 percent) and Nampula (-0.09 percent).

Isabel Felino | isabel.felino@tradingeconomics.com
6/6/2014 1:07:52 PM