"We anticipate that the exchange rate of the kwanza against the dollar will depreciate until the end of the year, with the recovery of oil prices, reaching 666 kwanzas to the dollar", reads a comment from this African subsidiary of the British Oxford Economics to the last numbers of the evolution of prices in Angola.
Inflation in August rose to 26.1 percent from the same month last year, also rising from 25.7 percent in July, and recorded the highest rate since October 2017.
"The severe drought in southern Angola, the worst in four decades, and the poor fishing season on the Angolan coast have exacerbated the rise in food price inflation," the note sent to clients, which Lusa had access to, writes. .
As the price of oil is expected to reach the peak of the year in the third quarter and the inflation rate is expected to rise to 23.7 percent, up from 22.2 percent recorded last year.
However, analysts conclude, "higher-than-expected data should drive an increase in the inflation forecast in the next round of forecasts."
Inflation in Angola remained virtually unchanged, rising slightly 0.03 percent in August compared to July, while prices rose 2.68 percent compared to August last year, to 26.09 percent.
Currency will drop to 666 kwanzas per dollar by the end of the year
Consultant NKC African Economics predicts that Angola's national currency will devalue by the end of the year to 666 kwanzas per dollar, putting pressure on household spending on imported products, namely food.
