Annual inflation in Mozambique accelerated to 7.2% in May, driven mainly by rising fuel and transport prices, according to data released this Wednesday (10) by the National Institute of Statistics (INE).
According to Lusa, which cites the Consumer Price Index (CPI), prices rose by 2.32% month-on-month in May, significantly higher than the 0.63% recorded in April.
INE reports that the transport sector and food and non-alcoholic beverages were the main contributors to the price acceleration, accounting for 1.80 and 0.32 percentage points of the monthly variation, respectively.
The price increases follow fuel adjustments introduced on 7 May, at a time when the country was facing supply constraints due to the impact of the Middle East conflict on international energy markets. At the time, diesel prices rose by 45.5%, while petrol increased by 12.1%.
Beyond fuels, the report highlights increases in the prices of urban and suburban semi-collective passenger transport (up 11.9%), long-distance road transport (up 26.3%), and taxi services (up 23.5%). Among food products, fresh fish and tomatoes were among the main contributors to inflation, rising by 11.7% and 5.7%, respectively. Together, these goods and services accounted for about 2.10 percentage points of monthly inflation.
INE data also shows that cumulative inflation since January reached 5.19%, reflecting a rising price trend over the first five months of the year. This performance contrasts with 2025, when annual inflation stood at 3.23%, below both 2024 levels and government projections.
In response to inflationary pressures, the Bank of Mozambique decided in May to keep its policy interest rate, the MIMO rate, at 9.25%. At the same time, the central bank increased reserve requirements in local currency and warned that inflation could reach double digits if the effects of the fuel crisis triggered by the Middle East conflict persist.
According to Bank of Mozambique Governor Rogério Zandamela, the decision reflects uncertainty regarding the duration of the conflict and its impact on global supply chains, goods availability, and fuel and food prices.
Inflation trends will continue to be closely monitored by monetary authorities, at a time when the government maintains its forecast of inflation around 7% for 2026.
Source: Diário Económico
