Maputo, 16 Jul (AIM) – The average level of prices in Mozambique’s urban areas rose by 7.51 percent last June, according to the latest figures published by the National Statistics Institute (INE).
According to INE figures, the cumulative rise in the cost of living from January to June was 5.40 percent, placing pressure on household budgets.
The document points out that the increase in the cost of living could reach or even exceed 10 percent by December. “The price hikes stem primarily from the recent increase in fuel prices and the impact of recent floods, the effects of which are still being felt”, reads the report.
According to the document, all capital cities recorded an increase in the general price level.
The central city of Tete recorded the largest price increase, with approximately 13.54 percent, followed by the southern central city of Quelimane Xai-Xai (9.99 percent).
The southern cities of Xai-Xai and Inhambane recorded 8.96 percent and 8.59 percent, respectively.
On the other hand, the central cities of Beira and Chimoio recorded 6.25 percent and 8.90 percent, respectively. While country’s capital Maputo recorded the lowest increase (4.16 percent).
The report, citing the Consumer Price Index (CPI), points out that the sharpest increases were recorded in transport costs, which rose by 13.85 percent, alongside a 13.35 percent rise in the cost of food and non-alcoholic beverages, factors that directly impact citizens’ basic daily expenses.
“The figure surpasses the 7.22 percent recorded last May, confirming an upward trend in the erosion of purchasing power. In comparative terms, year-on-year inflation stood at 4.14 percent during the same period, demonstrating a marked acceleration of the indicator over the last 12 months”, reads the document.
The report adds that this rise in prices poses new challenges for the national economy “and places a financial squeeze on Mozambican households, who are now facing higher costs for essential goods in the country’s markets.”
(AIM)
Am/
