"Mainly due to the fall in oil prices this year and currency liberalization, the kwanza has lost about 20 percent of its value since the beginning of the year, having passed the 600 dollars barrier in June, but has recovered thanks to an increase in oil prices in recent weeks," write the analysts, stressing that "the national currency remains vulnerable to changes in global sentiment and is expected to depreciate more than 50 percent in 2020".
In the note sent to customers, and to which Lusa had access, the analysts pointed out that the devaluation of the kwanza "will continue to put pressure on consumer prices, due to Angola's strong dependence on imported products," and warned that the implementation of the Value Added Tax (VAT), as well as the increase in fees, "will continue to put pressure on inflation".
Last week, the National Statistics Institute released that the National Consumer Price Index (CPI) in Angola rose to 22.93 percent in July, an increase of 5.69 percentage points over the same period.
In monthly terms, inflation registered a change of 1.78 percent between June and July 2020.
With reference to Luanda province, the inflation rate for the period from June to July 2020 was 1.83 percent, around 0.13 percentage points lower than in the previous period.
The year-on-year change stood at 22.17 percent, i.e. an increase of 4.58 percentage points over the previous period.
