The Monetary Policy Committee (CPMO) of the Bank of Mozambique predicts a "slight acceleration" in inflation in the economy by the end of the year, but still below 6%, according to a report released today.

"The short-term outlook points to a slight acceleration in inflation. This outlook reflects the end of the cold season, the increase in fares at the Moamba tollgate and the increase in fuel and food prices in South Africa," reads the 'Economic Situation and Inflation Outlook' report consulted by Lusa.

The report warns, however, that "the prevailing risks" to this outlook are the "uncertainties" regarding "the adjustment of domestic fuel prices" and "the magnitude of the effects and impact of the 'El Niño' phenomenon".

In September 2023, the expectations of economic agents indicate that, in December 2023, annual inflation could be 5.88%, after the 6.39% revealed in the previous survey [in August]," says the same report.

Annual inflation in Mozambique fell to 4.9% in August, after 5.7% in July, a drop attributed by the central bank, "mainly by the fall in food prices, favored by the extension of the cold season, in a context of stability of the metical".