Mozambique: Second Month of Falling Prices


Maputo — The overall level of prices in Mozambique fell in June by 0.55 per cent, according to the latest figures from the National Statistics Institute (INE), based on the consumer price indices for the country’s three largest cities (Maputo, Nampula and Beira).

This was the second consecutive month of deflation. In May, prices fell by 0.6 per cent. This is not particularly unusual. Deflation has often occurred in the Mozambican winter in previous years. The basic trend is for prices to rise in the beginning of the year (January to April), fall in the winter months, as the harvest comes in (May to July), and then rise again in the final months of the year.

Taking the first six months as a whole, the INE said, Mozambique experienced inflation of 0.58 per cent. Annual inflation (from 1 July 2019 to 30 June 2020) was 2.69 per cent.

The main price falls in June were for tomatoes (down by 9.6 per cent), onions (5.8 per cent), cabbage (4.6 per cent), groundnuts (3.1 per cent) and diesel (3.1 per cent). The price of brown sugar fell by 7.9 per cent, doubtless as a result of the removal of Value Added Tax (VAT) from sugar.

The trend to falling prices was countered by a few goods where average prices rose, thus sweet potatoes rose in price by 16.6 per cent, lemons by 23.4 per cent, materials for home repairs and decoration by 3.4 per cent, and cigarettes by one per cent.

All three cities experienced deflation, but at differing levels. In Beira prices fell by 1.17 per cent, in Nampula by 0.8 per cent, and in Maputo by 0.21 per cent.


Source: Agencia de Informacao de Mocambique