Luanda - The inflation rate in Angola will continue to fall as of next August, if the current trend of slowing monthly prices in the national economy continues, the Angolan government's Executive Macroeconomic Programming (PME) 2024 has said.
The government's projected inflation target by the end of this year is 19%, as a result of the reinforcement of the budget allocation for the 2024/2025 agricultural campaign, the sovereign guarantee for the promotion of business production and the import of widely consumed foodstuffs.
According to data from the National Statistics Institute (INE), to which ANGOP had access Friday, the monthly inflation rate in Angola fell again in May, standing at 2.49%, which represents a reduction of 0.12 percent compared to April.
This downward trend is the second time in a row this year, after a similar trend in March.
According to INE's data, the reduction in inflation was mainly driven by class 1 of the National Consumer Price Index (CPI) basket, which covers food and non-alcoholic drinks.
This class recorded a price variation of 2.06% in May, a significant decrease on the 3.13% recorded in April, while food and non-alcoholic drinks account for 55.66% of the weight of the CPI.
This year, the highest inflation rate in the country was recorded in April, at 2.61%, followed by 2.58% in February. January and May had the lowest rates, both at 2.49%.
The projections indicate that, with the maintenance of current policies and the strengthening of price control measures, Angola will be able to achieve the established inflation target, contributing to economic stability and the well-being of the population.
Early on Thursday the Economic Commission of the Council of Ministers considered a draft law that grants the President of the Republic authorization to define a new legal regime applicable to price regulation in the national economy.
The initiative, which was analyzed during the third ordinary meeting of this body, led by the President of the Republic, João Lourenço, essentially aims to create an institutional mechanism for monitoring the prices of goods and services, which will result in the gradual discontinuation of price regulation in the long term.
It will be implemented while maintaining minimal state intervention in the economy, with greater room for self-regulation, growth and market efficiency, thus contributing to achieving economic stability. OPF/QCB/TED/AMP
