Mozambique Inflation Rate Slows Slightly in July

Mozambique’s annual inflation rate edged down to 7.48% in July 2026 from 7.51% in June. The slowdown was mainly driven by softer food inflation, which fell to 12.62% from 13.35%, alongside easing price growth for recreation, sports and culture (4.69% vs 4.76%), restaurants and hotels (4.22% vs 4.44%) and alcoholic beverages and tobacco (4.11% vs 4.68%). In contrast, transport inflation accelerated to 14.87% from 13.85%, while inflation also increased for clothing and footwear (4.81% vs 4.62%), furnishings (1.44% vs 1.19%) and communications (0.35% vs 0.18%). Housing and utilities inflation was broadly stable at 4.44%. On a monthly basis, consumer prices fell 0.26%, reversing a 0.2% increase in June.

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.