Africa-Press – Mozambique. Prices in Mozambique suffered more deflation in June, for the third consecutive month and the seventh in 14 months, influenced by some food and fuel prices, according to data from the National Statistics Institute (INE) accessed by Lusa today.
The INE’s Consumer Price Index (CPI) for June indicates that Mozambique “registered a price drop of approximately 0.07%” compared to May, with the food and non-alcoholic beverage sector once again standing out, contributing a negative 0.12 percentage points to the total monthly change.
“Breaking down the monthly variation by product, we highlight the drop in the prices of tomatoes (7.0%), cabbage (9.3%), butter beans (3.3%), diesel (3.1%), gasoline (1.0%), lettuce (9.2%), and coconuts (6.6%). These contributed approximately 0.32 percentage points to the total monthly variation,” the INE report reads.
This is the seventh price deflation in Mozambique in just over a year, after the CPI recorded price drops of 0.11% in August 2024, 0.05% in July 2024, 0.21% in June 2024, and 0.38% in May 2024, as well as 0.38% in April 2025 and 0.36% in May 2025, and a repeat this June of 0.07%.
The INE also reports that, compared to 2024, the CPI indicates a year-on-year price increase of 4.15% in June this year (4.0% at the end of May and 3.99% in April this year), influenced mainly by the food and non-alcoholic beverages segment, as well as restaurants, hotels, cafes, and similar establishments, which increased 9.38% and 8.53%, respectively, in the same year.
According to previous INE data, accumulated inflation in 2024 stood at 4.15%, compared to 5.3% in 2023, but below the peak of nearly 13% reached in July 2022.
The government expects Mozambique to close 2025 with inflation of around 7%.
The Bank of Mozambique estimates that annual inflation will continue to slow in the coming months, reflecting the recent decision to exempt some basic products from VAT and reduce road toll rates by up to 60%.
“In the short term, the trend of decelerating annual inflation is expected to continue, reflecting the impact of the VAT exemption on basic products (sugar, cooking oil, and soap), the downward adjustment of water and toll tariffs, and the drop in food prices on the international market, in a context of stability of the metical,” reads the Economic Situation and Inflation Outlook report, reported on by Lusa in May.
The document also points out that the regular survey of economic agents “corroborates the outlook for a deceleration in annual inflation” as the macroeconomic expectations of economic agents revealed in the May study “point to annual inflation of 4.90% in December 2025, which represents a downward revision of 3 basis points compared to the expectations disclosed in the April survey”.
“However, considerable risks and uncertainties persist, primarily internal in nature, which pose challenges to maintaining this scenario, particularly the impacts of the growing worsening of the fiscal situation, uncertainty regarding the speed of recovery of productive capacity and the supply of goods and services, as well as the effects of climate shocks,” the report adds.
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