The National Institute of Statistics (INE) reported on Friday, October 10, that prices in the country increased by 0.29% in September, half of the rise recorded in August, while year-on-year inflation rose slightly to 4.93%.
“Mozambique recorded a price increase of 0.29% compared to August, which had registered a 0.68% rise. This situation was influenced by the food and non-alcoholic beverages sector, which contributed –0.08 percentage points to the total monthly variation,” according to data from the Consumer Price Index (CPI).
According to the CPI’s analysis of monthly variation by product, “there was a notable increase in the prices of fresh fish (2.0%), DSTV television service fees (3.9%), motorcycles (3.6%), maize grain (5.7%), dried fish (1.0%), cabbage (3.4%), and complete meals in restaurants (0.4%).”
The report, cited by Lusa, notes that “the country had previously registered eight monthly declines in the consumer price index in less than a year and a half—four of which occurred between April and July—before resuming increases in August and September.”
INE also stated that, compared with 2024, the CPI indicates a year-on-year price increase of 4.93% in September (4.79% in August and 3.96% in July), mainly influenced by the food and non-alcoholic beverages division, as well as restaurants, hotels, cafés, and similar establishments, which saw annual increases of 11.85% and 9.01%, respectively.
The Bank of Mozambique (BdM) estimates that annual inflation will continue to slow down in the coming months, driven by the decision to exempt Value Added Tax (VAT) on some basic products and to reduce toll fees by 60%.
“In the short term, the slowdown in annual inflation is expected to continue, reflecting the impact of VAT exemptions on basic goods (sugar, cooking oil, and soap), the downward adjustment of water and toll tariffs, and the fall in international food prices, within a context of metical stability,” the central bank stated.
According to the Economic Outlook and Inflation Prospects Report, the regular survey of economic agents “supports expectations of a continued slowdown in annual inflation, as the macroeconomic outlook of respondents in the May survey points to an annual inflation rate of 4.90% in December 2025, representing a downward revision of 3 basis points compared to the expectations published in the April survey.”
Source: Diário Económico
