According to the BMA's weekly analysis released this Monday, inflation in October was 23.39 percent, above the 21.88 recorded in October 2021, 11.95 percent in the same month of 2022 and 14.63 percent percent in 2023, noting that, if the monthly variation reaches an average of 1.75 percent in November and December, the inflation rate could settle at 26.89 percent at the end of 2024.
“After the accelerated acceleration between May 2023 and April 2024, the slower pace of price increases, especially in recent months, “has been fundamental for the management of less intense restrictive monetary policy”, reads the BMA assessment on the slowdown in the inflation rate in Angola.
In October 2024, the annual variation in inflation in Angola was 29.17 percent, which marks the third consecutive annual slowdown, points out the bank, remembering that in monthly terms inflation reached 1.55 percent, a slowdown of 0.08 percentage points compared to September, contrary to the acceleration recorded in August (1.61 percent) and September (1.63 percent).
“food and non-alcoholic beverages” were the classes that most contributed to the increase in the general price level with 1.01 percentage points during the month of October, followed by “miscellaneous goods and services”, “health” and “clothing and footwear ”, according to the National Statistics Institute of Angola.
The proposal for the General State Budget (OGE) 2025, approved last week in general, reveals that, in 2024, the inflation rate could end the year at 23.4 percent, and in 2025, it could drop to 16. 6 percent.
The BMA understands that the expectation of a slowdown in the inflation rate in the country should reflect the increase in non-oil production, “with the OGE 2025 proposal predicting a growth of 5.15 percent, higher than the 4.62 percent record presented in OGE 2024”.
The risks with the acceleration of exchange rate depreciation, the reversal of the global inflation slowdown trend and the interruption of international supply chains, “in a context in which global geopolitical risks remain, could be the main pressure factors for a further slowdown in inflation in Angola”, maintains the banking institution.
The Monetary Policy Committee (CPM) of the National Bank of Angola (BNA) releases the results of its 120th ordinary meeting on Tuesday, which began in the province of Cuanza Norte.
This BNA body decided to maintain, in September, the basic interest rate, known as the BNA rate, at 19.5 percent and the interest rates for providing liquidity at 20.5 percent and for absorbing liquidity at 18. 5 percent.
The governor of the BNA, Manuel Tiago Dias, said, at the time, that these decisions were justified by the need to maintain monetary conditions appropriate to the slowdown in the pace of price growth in the Angolan economy and to reduce inflationary pressures in the short term.
