Angola: Inflation increases to over three-year high in June
July 14, 2021
Consumer prices increased 2.24% in June over the previous month, picking up from the 2.21% rise recorded in May. The print was driven by quicker price increases for food and non-alcoholic beverages, and transport.
Inflation came in at 28.7% in June, which was up from May’s 28.0%. June's result represented the highest inflation rate since October 2017. Consequently, the trend pointed up, with annual average inflation coming in at 25.5% in June (May: 24.9%).
Reflecting on the outlook for inflation and its effects on the economy, Gerrit van Rooyen, economist at Oxford Economics, noted:
“We forecast inflation will remain elevated due to the kwanza’s depreciation and taxes. The increase in consumer prices will reduce real incomes and impede personal consumption. The protracted economic depression has also resulted in higher unemployment and slower earnings growth, which further reduces total consumer spending power.”