"We expect that an appreciation of the average exchange rate of the kwanza and a slowdown in the rise in raw material prices will help inflation to slow down to reach an average of 18.3 percent in 2022, after the 25.7 percent recorded in 2021", reads a comment on data from the National Statistics Institute on the rise in prices in December.
In the comment, sent to customers and to which Lusa had access, the analysts write that "despite the depressed economic conditions and the recent strength of the kwanza, inflation continued its upward trajectory in 2021", motivated mainly by the effects of the significant fall in the Angolan currency in 2019 and 2020, which emerged due to global oil prices and the reduced intervention of the central bank, which made the currency lose 56 percent of its value against the dollar in these two years".
Inflation in Angola continued to rise, reaching 27.03 percent in December, the highest value since July 2017, and also rising 2.1 percent from November.
