Mozambique Inflation Rate Accelerates for 5th Month

The annual inflation rate in Mozambique quickened to 7.51% in June 2026 from 7.22% in May, marking its highest reading since May 2023 and the fifth consecutive month of acceleration. The main upward pressure continued to come from prices of transportation (13.85% vs 12.61% in May) and food & non-alcoholic beverages (13.35% vs 12.93%), alongside alcoholic beverages & tobacco (4.68% vs 4.55%) and housing & utilities (4.68% vs 4.55%). On a monthly basis, the CPI rose by 0.20%, slowing sharply from a 2.32% surge in the preceding month.

The annual inflation rate in Mozambique picked up to 7.22% in May 2026, accelerating from 4.41% in the prior month and marking the steepest rise since May 2023. The increase was mainly driven by a fuel shock following April supply disruptions linked to geopolitical tensions in the Middle East, which triggered sharp adjustments in diesel and gasoline prices in May. This resulted in a strong rebound in transportation prices (12.61% vs -0.72%), underpinned by higher fuel costs (12.50% vs -4.28%) and transportation services (14.24% vs 0.12%). This appears to have propagated through the economy, contributing to broader price acceleration across categories, including food & non-alcoholic beverages (12.93% vs 10.24%); alcoholic beverages & tobacco (4.55% vs 2.92%) and housing & utilities (2.87% vs 2.41%). Monthly, the CPI climbed by 2.32% in May, the steepest increase since February 2019, after a 0.63% rise in the prior month, mainly on account of prices of transportation and food.

The annual inflation rate in Mozambique accelerated for the third consecutive month, reaching a six-month high of 4.41% in April 2026. The increase was attributed to severe flooding in recent months and fuel supply constraints in several parts of the country, which caused shortages and disrupted the distribution of essential goods. Price pressures were most pronounced in food & non-alcoholic beverages (10.24% vs 6.20% in March); clothing & footwear (5.23% vs 4.68%); restaurants & hotels (4.58% vs 5.30%) and recreation & culture (3.96% vs 3.48%). On a monthly basis, the CPI rose by 0.63%, after a 0.22% increase in the month before.