Mozambique’s urban areas experienced a 1.6% rise in average prices in December, leading to an annual inflation rate of 4.15% for 2024. Quelimane had the highest inflation at 4.98%. The Bank of Mozambique reported an inflation spike to 4.69% in January, driven by rising prices of essential goods such as tomatoes and fish. Several items also saw price decreases.

The average price levels in Mozambique’s urban regions increased by 1.6% in December, as reported by the National Statistics Institute (INE). This rise has led to an annual inflation rate of 4.15% for 2024. Significant inflation was noted in Quelimane at 4.98%, followed by Xai-Xai (4.42%), Beira (4.33%), and Nampula (4.32%). Maputo recorded a lower annual inflation rate of 3.85%.

According to the Bank of Mozambique, the inflation rate surged to 4.69% in January. Major contributors to the price surge in December included tomatoes (21.4%), fresh fish (5.8%), wheat bread (5%), cooking oil (4.2%), and dried fish (3.4%).

There were also some instances where prices notably decreased, such as lemons which dropped by 8.4%, and children’s shoes, which went down by 0.7%. The inflation rates for December and January are substantially higher compared to rates recorded in previous months: 2.84% in November, 2.86% in October, and 2.45% in September.

The inflation rates in Mozambique have exhibited a significant upward trend, particularly from December to January. Major cities experienced varying levels of inflation, with Quelimane leading at 4.98%. Essential goods have seen substantial price increases, while a few items witnessed price reductions. The overall inflation rates have notably accelerated compared to the latter months of 2023, highlighting a concerning economic trend.

Original Source: clubofmozambique.com