Home Economy Mozambique: inflation turns into deflation

Mozambique: inflation turns into deflation

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The average level of prices in the country fell by 0.6 per cent in May, according to the latest statistics released by the National Statistics Institute, established on the consumer price indices for Maputo, Nampula and Beira.

The May fall in prices means that inflation for the first five months of the year was only 1.14 per cent. Inflation for the entire year (1 June 2019 to 31 May 2020) was 3.02 per cent.

Major factor in the May deflation, never experienced in the country before, was the fall in the price of private education sector. Because of schools’ closure private educational establishments either cut their fees for May, or it turned out they were unable to charge parents.

Some food items rose in price in May – such as brown sugar (11.5 per cent), onions (6.5 per cent), vegetable oil (3.4 per cent) and fish (0.8 per cent).

Deflation in the midyear is quite normal for Mozambique – hence in May 2019, prices fell by 0.31 per cent.

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