According to the Business Strength Index published a few days ago by the Confederation of Mozambican Economic Associations (CTA) in the 2nd Quarter of 2022, the average annual inflation continued its trend of acceleration, reaching 6.82%, compared to 6.13% registered in the previous Quarter.

According to CTA, the acceleration in the general price level is explained on the one hand by the effect of the pass-through of international fuel and food prices to the domestic market, and on the other by the weak supply of fresh produce associated with the irregular rainfall in the country.

The Business Robustness Index shows that exchange rate stability continued to be the variable that softened the existing pressures.

Looking at the trend of the Exchange Rate, the data from Banco de Moçambique referring to the II Quarter of 2022 show that this variable continued to present a stable behavior, a situation that has lasted since the III Quarter of 2021, with the average exchange rate situated at MZN/USD 63.83 in the II Quarter of 2022.

This stability of the Metical means that the conditions of demand and supply of foreign exchange did not show major changes between Q1 and Q2 2022.