Angola: Inflation finally dipping, but still excruciatingly high
April 18, 2017
Consumer prices in the province of Luanda, Angola rose 2.24% in March from the previous month, down from February’s 2.59%. According to the National Statistical Institute (Instituto Nacional de Estatística), March’s figure reflected a broad-based increase in prices, with a particularly significant uptick in prices for footwear and clothing and tobacco and non-alcoholic beverages.
Inflation dropped from 39.5% in February to 37.9% in March, the lowest rate since July 2016 and marking the third consecutive monthly decline. However, annual average inflation continued to rise, ticking up from 35.8% to 37.0%. Although recent data suggests the economy may be over the inflation hump, with the effects of higher fuel prices and the depreciation of the kwanza observed last year finally starting to wind down, inflationary pressures remain extremely high.
Author: Oliver Reynolds, Economist