The consulting firm NKC African Economics estimated on Monday that inflation in Mozambique for the year as a whole will stand at 5.3%, above the 3.1% recorded in 2020 and in line with the 5.2% in the first half of the year.

"Inflation averaged 5.2% in the first half, up from 3.2% in the same period last year; we anticipate that weak domestic demand will contain inflationary pressures this year," write the analysts at the African branch of British consultancy Oxford Economics.

In the note, sent to clients and to which Lusa had access, the analysts recall that inflation stood at 5.5% in July compared to the same month in 2020, a rate equal to that recorded in June and May.

"On a monthly basis, inflation was down 0.2% in July [from the previous month], after a 0.5% decrease in June from May, influenced by the alcoholic and non-alcoholic beverages index," the analysis reads.

"The factors that will influence inflation in the near term will be rising oil prices and disruptions in supply chains, and we also anticipate that the global oil price will increase significantly this year and should support the rise in inflation in the near term," conclude the analysts, who say they do not anticipate any change in monetary policy this year.

Lusa Agency