Inflation in Angola maintained the upward trend started in May in August, accelerating to 13.54% in year-on-year terms and 2.04% in monthly terms, mainly due to the rise in prices in the areas of education, food and transport.
The National Statistics Institute highlights the increase in the year-on-year variation, which stood at 13.54%, almost at the maximum limit of the target for 2023, already revised upwards by the National Bank of Angola, which pointed to a range between 12 and 14% .
In monthly terms, the National Consumer Price Index (INPC) registered a variation of 2.04%.
The data shows that of the 12 consumption classes analyzed, all registered increases, including ten with rates above unity.
The “Education” class was the one that recorded the biggest price increase, with a variation of 6.19%, highlighting also the increase in prices for the “Health” classes with 2.37%, “Food and non-alcoholic drinks” with 2.19% and “Miscellaneous goods and services” with 2.12%.
The provinces that recorded the greatest variation in prices were: Luanda with 2.82%, Lunda-Sul with 2.06% and Namibe with 1.67%.
Official data (INE) in detail
The Wholesale Price Index (IPG) registered a monthly variation, in the period from June to July 2023, of 1.91%, being 0.25 percentage points higher than that recorded in the previous period and 0.78 percentage points higher in relation to registered in the same month of 2022.
The year-on-year variation in July stood at 16.46%, registering a drop of 9.26 percentage points in relation to that observed in the same period of the previous year. The year-on-year variation trend in the last 3 years up to March is increasing, reversing its direction from April 2022 onwards.
During the month of July 2023, the prices of national products increased by 2.38% compared to those in June, with Section D – Manufacturing Industries registering the biggest price increase with 2.45%. The products that had the greatest price variation in this group were the following: Wheat flour with 3.68%, Corn flour with 3.60%, Soda with 3.49%, Frozen cachucho with 3.17%, Frozen horse mackerel with 3.07%, Beer 2.81%, Wine 2.51%, Mineral water 2.46%, Pork 2.42%, Cement block 2.30%, Beef 2 .07%, Cement with 1.71%, Bar soap and Dried meat with 1.64% respectively, Offal with 1.53%, Dried mackerel with 1.49%, Soap with 1.45%, Refrigerator with 1, 04% and False hair with 0.85% among the main The accumulated variation of national products in July 2023 was 15.14%.
The Wholesale Price Index (IPG) registered a monthly variation, in the period from July to August 2023, of 2.27%, being 0.36 percentage points higher than that recorded in the previous period and 1.15 percentage points higher in relation to registered in the same month of 2022.
The year-on-year variation in August stood at 17.79%, registering a drop of 6.42 percentage points in relation to that observed in the same period of the previous year. The year-on-year variation trend in the last 3 years up to March is increasing, reversing its direction from April 2022 onwards.
During the month of August 2023, the prices of national products increased by 2.45% compared to those in July, with Section D – Manufacturing Industries registering the biggest price increase with 2.52%. The products that had the greatest price variation in this group were the following: Beef with 3.80%, Goat meat with 3.78%, School notebook with 3.75%, Wheat flour with 3.70%, Book 2nd class mathematics with 3.66%, Frozen mackerel with 3.63%, Mechanical pencil with 3.59%, Corn flour with 3.58%, Soda with 3.52%, Offals with 3.49%, Pencil with 3.36%, Pork 3.25%, Frozen croaker 3.19%, Frozen cachucho 3.12%, Beer 3.00%, Smoked catfish 2.76%, Soybean oil 2 .69% and Bar soap with 2.44% among the main ones.
During the month of August 2023, the prices of imported products increased by 2.21% compared to the previous month, influenced by the price variation seen in Section D – Manufacturing Industries with 2.24%. The products that increased the most in price were the following: White needle rice with 9.18%, Soybean oil with 5.29%, Cane sugar with 5.15%, Wheat flour with 4.22%, Frozen chicken with 4.06%, Notebook with 3.62%, Pasta with 3.20%, Sunflower oil with 3.09%, Olive oil with 3.08%, Book (2nd class) with 3.06%, Food of children with 2.66%, Pork with 2.51%, A-4 paper with 2.38%, Beef with 2.30%, Carbon carbon paper with 2.28%, Red wine with 2, 23%, Tuna with 2.22%, Beer with 2.21%, Frozen Mackerel with 2.18% and Notepad with 2.15% among the main ones.
Global inflation for the month of August 2023 was 2.27%, with imported products contributing the most with 1.62 percentage points, or 71%, and national products with 0.65 percentage points, which corresponds to 29% of the value of global inflation.
Inflation of national products in August 2023 was 2.45%. Section D – Manufacturing Industry, with 1.45 percentage points, was the one that contributed most to the price variation of national products. The products that contributed most were the following: Soda with 0.67 percentage points, Beer with 0.41 percentage points, Wheat flour with 0.04 percentage points, Beef, Wine and Soap bars with 0.02 percentage points each, Frozen Mackerel, Powdered milk and Soybean oil with 0.01 percentage points each, among the main ones.
Inflation for imported products in August 2023 was 2.21%. Section D – Manufacturing Industry, with 2.11 percentage points, was the one that contributed most to the price variation of imported products. The products that contributed most were the following: White needle rice with 0.30 percentage points, Frozen franc with 0.21 percentage points, Pork with 0.20 percentage points, Wheat flour with 0.16 percentage points, Sugar sugarcane with 0.12 percentage points, Beer and Soybean oil with 0.09 percentage points each, cornmeal with 0.06 percentage points, powdered milk and red wine with 0.05 percentage points each, chorizo and soda with 0 .04 percentage points each, Frozen Mackerel, Beef and Offal with 0.03 percentage points each, Pasta with 0.02 percentage points, Biscuits, Powdered detergent, Canned meat, Peeled tomatoes, Sardines, Oil sunflower oil, Palm oil, Book (2nd class) and Olive oil with 0.01 percentage points each among the main ones.
Inflation consists of a generalized and sustained rise in the prices of goods and services consumed by families. In a market economy, the price of goods and services can vary at any time: some prices rise, others fall.
Inflation exists when the prices of goods and services increase across the board (and not just the price of some specific items), and this increase continues over time.
Inflation affects us all because, with the continued increase in prices, the currency loses value over time. In other words, we need more money than before to buy the same products and services.
High inflation makes economic activity difficult because it reduces the predictability necessary for transactions and the signing of contracts, and implies increased costs, particularly with more frequent price updates.
However, negative inflation rates also harm economic activity because, in a context of prolonged and widespread price declines (deflation), families and companies tend to postpone part of their consumption and investment in the expectation that the cost of these activities will decrease. . If most families and companies postpone consumption and investment decisions, the economy contracts due to the reduction in aggregate demand, reinforcing the context of deflation.
Stable prices are therefore beneficial to the economy. In the euro area, for example, it is up to the European Central Bank and other central banks to maintain price stability. However, price stability does not mean that prices do not increase. On the contrary, the Governing Council considers that price stability is best ensured with a 2% inflation target over the medium term.