Cape Verde Inflation Rate Rises from 2-Year Low

The annual inflation rate in Cape Verde rose to 0.8% in May 2026 from 0.3% in the previous month, which marked the lowest reading since March 2024. Upward pressure came mainly from transportation (3.4% vs 0.8% in April), alcoholic beverages and tobacco (3.9% vs 3.8%), and food and non-alcoholic beverages (0.8% vs 0.2%). Additionally, deflation eased in housing and utilities (-3.8% vs -4.2%). Meanwhile, price growth slowed in furnishings and household equipment (6.2% vs 6.7%), clothing and footwear (4.2% vs 4.7%), health (2.9% vs 3.1%), recreation and culture (1.3% vs 1.5%), education (0.2% vs 0.3%), hotels, restaurants and cafés (3.5% vs 3.9%), and miscellaneous goods and services (0.6% vs 1.3%), while communication costs declined (-0.3% vs 0.1%). On a monthly basis, the CPI rose 0.5%, following gains of 0.1% in each of the previous two months.

The annual inflation rate in Cape Verde came in at 0.7% in March 2026, up slightly from 0.6% in February, which was the lowest reading since March 2024. Upward pressure came mostly from clothing and footwear (8.4% vs 8.2% in February); furnishings and household equipment (6.7% vs 6.6%); alcoholic beverages and tobacco (6.2% vs 3.8%); hotels, restaurants and cafés (6.2% vs 6.1%) and health (3.4% vs 2.4%). Meanwhile, prices slowed for food & non-alcoholic beverages (1.6% vs 2.5%) and miscellaneous goods & services (1.5% vs 2.3%). At the same time, decreases were seen for housing & utilities (-4.8% vs -4.8%) and transportation (-1.5% vs -3.6%). The government recently approved exceptional measures to curb rising fuel prices amid the economic impact of the US–Iran conflict, including suspending the automatic pricing mechanism until June 30 and capping gasoline and diesel price increases at up to 8%. On a monthly basis, the CPI rose by 0.1%, after a 0.2% decrease in the prior month.

The annual inflation rate fell for the second month to 0.6% in February 2026, marking the softest reading since March 2024. It compares with 1.4% in January. Price growth moderated for restaurants & hotels (6.1% vs 9% in January); food & non-alcoholic beverages (2.5% vs 3.7%); alcoholic beverages & tobacco (3.8% vs 5.8%); furnishings & household equipment (6.6% vs 8.4%) and miscellaneous goods & services (2.3% vs 2.7%). Additionally, prices decreased faster for housing & utilities (-4.8% vs -4.5%) and transportation (-3.6% vs -1.5%). On a monthly basis, the CPI fell by 0.2%, after a 1.7% decline in the prior month.