Over 1.2 per cent in December

Inflation in Mozambique was 1.2 per cent in December, according to the National Statistics Institute (INE), drawing on the consumer price indices for the three largest cities (Maputo, Nampula and Beira). This means that inflation for the entire year of 2020 was 3.52 per cent. The government has thus easily met its target of “single digit inflation” – that is, inflation of ten per cent or less.

The December inflation was the largest set of monthly price rises in the entire year. There were price rises in the first four months of 2020, but always much less than one per cent. The next three months (May, June and July) were a period of deflation. As the harvest came in, the average level of prices dropped. Price rises resumed, but at a modest level, as from August. The sharper price rises in December are likely due to retailers raising their prices to take advantage of the festive season.

The main price rises noted in December were for coconuts (32.2 per cent), chickens (15.3 per cent when alive, and 6.1 per cent when dead), tomatoes (12.2 per cent), and cabbage (14 per cent). Some products fell in price over the month, notably lemons (by 22 per cent), women’s dresses (6.4 per cent), and liquid fuel (diesel down by 1.2 per cent and petrol by 1.4 per cent). Price rises varied between the three cities – In Beira, the December inflation was 2.55 per cent, but in Nampula it was 1.4 per cent, and in Maputo, it was only 1.19 per cent.