Mozambique Central Bank Warns of Rising Inflation

Maputo, Mozambique – The Bank of Mozambique has issued a warning that inflation is expected to accelerate in the final quarter of 2024. This projected increase is primarily attributed to the recent political unrest following the general elections.

Despite the concerning inflationary trend, the central bank governor expressed optimism about the overall economic outlook. He emphasized that a swift resolution to the political instability is crucial to maintain economic stability.

Inflationary pressures have already begun to emerge, with October's figure reaching 2.68%, marking a reversal of the previous five-month downward trend. The central bank fears that ongoing political tensions could further exacerbate price increases for essential goods and services.

The central bank remains vigilant and is prepared to implement necessary monetary policy measures to mitigate inflationary risks. However, the ultimate success of these efforts hinges on a timely return to political normalcy.

As the nation navigates these challenging times, it is imperative to closely monitor economic indicators and adopt proactive measures to safeguard the country's financial health.