The Bank of Mozambique (BM) is concerned with the rise, in the international market, of the price of oil and other products consumed by our country. The concern focuses on the fact that the appreciation of these products may influence the rise of prices at the national level.
In the latest Report on the Economic Environment and Inflation Outlook (CEPI), published by the institution, the financial system regulator states that progress in vaccination programs, coupled with the approval of additional stimulus packages to economies, reinforce optimism about the faster recovery of global demand, with an impact on the prices of the main export and import commodities, especially oil.
“From January 27 to the second week of March, the price of Brent crude registered accumulated gains of 24.8%, raising its price on the international market to 69.63 USD/barrel on one day, which raises concerns about its impact on domestic inflation, given the high weight of liquid fuel prices in the General Price Index,” reads the report.
The Bank of Mozambique justifies the rise in the price of Brent crude, essentially, with the maintenance of cuts in production by the Organization of Petroleum Exporting Countries (OPEC) and by the expectation of greater performance of the world economy.
Meanwhile, in an optimistic note, the regulator of the national financial system said in a report that there was also a tendency for the prices of some export products from Mozambique to rise, such as aluminium and coal, which could boost the country’s export revenues from the third quarter of 2020, with an impact on Mozambique’s economic growth.
