Angola: Inflation increases in February
Consumer prices increased 2.35% over the previous month in February, accelerating from January’s 1.94% increase. February’s result marked the sharpest increase in prices since September 2018 and was driven greater clothing and footwear, and food price pressures.
Inflation increased to 26.4% in February, from January’s 25.3%. February’s reading was the highest inflation rate since November 2017.
Gerrit van Rooyen, economist at Oxford Economics, commented that they “forecast inflation will remain elevated due to the kwanza’s continued depreciation, which will reduce real incomes and impede consumer spending growth. The economic depression has also resulted in higher unemployment, which further reduces total consumer spending power.” Van Rooyen continued: “We forecast inflation to decelerate slightly […] to 20.8% in 2021 on the back of slower kwanza depreciation [this year].”