The cost of living in the country is tending to get worse and worse, with the latest data from the National Institute of Statistics indicating that, compared to the same period last year, prices increased in April by 7.90%.

While activists speak of a devastating impact on people, businessmen warn of limits and economists call for bold government policies.

To VOA, social activist Telma Adriano considers that the impact is devastating for the most vulnerable populations, especially in Cabo Delgado province.

"In Cabo Delgado, in particular, the insurgency is affecting our economy in a very devastating way, first because when the insurgency began the mega-projects tended to close and the people who provided services for these companies were left without jobs, and when a certain social group becomes unemployed there is a caseia that is lost because these people lose their purchasing power," Adriano tells VOA.

Economist Nelsa Langa points to ways to reverse the situation and argues that the government can adopt measures to mitigate the impact of external shocks derived from the high fuel prices and the war between Russia and Ukraine, in addition to encouraging increased production.

"This price increase further reinforces the idea that we have to diversify the economy because what is happening is that the weight of the increase is mostly derived by external shocks, since we are very exposed," says Nelsa Langa.

She suggests that the "Government should adopt a policy of income redistribution, for example take from the richest to give to the poorest, tax the richest more and the poor less so that they can have a larger margin of disposable income."

Earlier the minimum wage was revised, however the increases did not meet the expectations of the working class.

Employers, according to Paulino Cossa of the Confederation of Economic Associations (CTA), say they have no alternative to mitigate the cost of living through a more robust wage increase, given the difficulties in increasing production due to the rising cost of raw materials on the international market.

"We have to be aware that there are projections regarding growth, regarding the impact of what are the current scenarios in the world may reflect on our economy, so ignoring those factors would perhaps be very dangerous for our economy, the readjustments may apparently be to the benefit of the worker, but at the end of the day we may notice that we have exacerbated what are the limits from a material point of view and jobs may be put at risk in the future," considers Cossa.

For the Central Bank, through its economist Pinto Ribeiro, the increase in prices of some export products as a consequence of the international situation may contribute to the relief of the cost of living, said Pinho Ribeiro, Economist at the Bank of Mozambique.

"On the export price side is that will benefit from the production point of view we have the increase in the price of natural gas, aluminum is coal, so the energy products in general," said Pinho Ribeiro.