Inflation rose in July to the highest since 2017

"The main inflation rate rose further for the fourth consecutive month, reaching the highest level since July 2017, according to data from the National Institute of Statistics (INE)", reads a comment from this African subsidiary of Oxford Economics .

In the comment on the evolution of prices, sent to customers and to which Lusa had access, analysts estimate that the rise in prices, throughout this year, should be 23.7 percent, above the 22.2 percent recorded. last year.

On the other hand, they add, the increase in the price of goods and services should have an impact on the evolution of the kwanza, Angola's national currency: "We anticipate that the average exchange rate for the kwanza will depreciate by the end of the year to 666 kwanzas per dollar, in a context of some recovery in oil prices".

This, they argue, "will put some price pressure on consumers, given Angola's heavy reliance on imported goods."

The International Monetary Fund (IMF) has recommended the authorities to tighten monetary policy in a context of gradual economic recovery, which includes raising interest rates in real terms.

"With this in mind, and due to concerns about rising inflation, the central bank raised the base interest rate by 450 basis points to 20 percent at its June meeting," analysts recall.

According to INE, prices increased by 25.7 percent in July compared to the same month last year, which represents an acceleration compared to the increase in June (25.3 percent), also compared to June. 2020.