Angola: Inflation dips once more in August, but remains elevated
September 12, 2017
Consumer prices in the province of Luanda rose 1.66% in August from the previous month, down from July’s 1.77%. According to the National Statistical Institute (Instituto Nacional de Estatística), August’s figure reflected a broad-based increase in prices, with particularly significant upticks in prices for healthcare, recreation and culture, and tobacco and alcoholic beverages.
Inflation dropped from 29.0% in July to 27.0% in August, the lowest rate since April 2016 and marking the eighth consecutive monthly decline. The latest inflation figures confirm that price pressures are declining after intensifying last year due to the effects of higher fuel prices and the depreciation of the kwanza. This is a clear sign that the National Bank of Angola’s (BNA) significant tightening cycle engaged in 2016 is bearing fruit.
Author: Oliver Reynolds, Economist