The annual inflation rate in Mozambique quickened to 3.50% in December 2019 from 2.58% in the prior month. It was the highest inflation rate since February, mainly due to heavy rains in the central and northern parts of the country, which destroyed several access roads and caused shortages of basic goods including food, fuel and medicines. As such, prices picked-up mostly for food & non-alcoholic beverages (7.99% vs 5.22% in November); health (7.47% vs 7.39%) and miscellaneous goods & services (2.77% vs 2.29%). Additional upward pressure came from alcoholic beverages & tobacco (3.89% vs 4.08%); housing & utilities (1.32% vs 1.15%); furnishings (0.46% vs -0.24%) and restaurants & hotels (3.92% vs 4.02%). In contrast, prices fell for transport (-0.12% vs -0.47%); recreation & culture (-1.74% vs -1.35%) and communications (-0.66%, the same pace as in November). On a monthly basis, consumer prices inched up 1.58%, after increasing 0.59% in the previous month. Inflation Rate in Mozambique averaged 7.62 percent from 2009 until 2019, reaching an all time high of 26.35 percent in November of 2016 and a record low of 1.05 percent in November of 2009.
Inflation Rate in Mozambique is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Mozambique to stand at 1.70 in 12 months time. In the long-term, the Mozambique Inflation Rate is projected to trend around 1.80 percent in 2020, according to our econometric models.