Angola: Inflation remains steady in December
January 14, 2022
Consumer prices rose 2.20% in December over the previous month, picking up from the 2.13% increase seen in November. The print chiefly reflected greater price increased for food and non-alcoholic beverages, and housing, water, electricity and fuel.
Inflation came in at 30.4% in December, unchanged from November’s figure. Annual average inflation came in at 28.8% in December, up from November’s 28.3%. Moreover, average inflation for the year as a whole marked the highest level since 2017.
Analysts at the EIU added:
“We forecast that inflation will moderate in 2022 as supply-side pressures ease (with the supply of food and other goods improving). We estimate that average consumer prices […] will fall sharply in 2022, to an average of 16.3% in 2022, which is lower than our previous forecast, of 18.8%. The decline in inflation is predicated on a stabilising exchange rate after several years of depreciation and volatility, which followed exchange-rate liberalisation in 2017, the reduction in VAT and a tighter monetary stance.”