Cabo Verde Sees 2.6% Inflation Drop

In September, Cabo Verde’s inflation rate reached 2.6%, the National Statistics Institute (INE) reported, marking a 0.3% dip from August.

This change continues the previously noticed slowdown in inflation, which saw a minor uptick in August.

When setting aside energy and unprocessed food costs, September’s core inflation was 2.7%, dropping 0.7% from August.

Considering the month-on-month data, the Consumer Price Index (CPI) increased by 0.1% in September, compared to August’s 0.9%.

The key areas influencing this hike were transportation, alcoholic drinks, tobacco, housing rents, and household utilities.

By the end of September, Cabo Verde is on track for a lower 2023 inflation than 2022’s.

So far, this year’s cumulative inflation stands at 1.5%, which is 4.9% less than the same timeframe in 2022.

For clarity, Cabo Verde’s 2022 inflation was 7.6%.

Background Cabo Verde Sees 2.6% Inflation Drop

Historically, Cabo Verde’s economy has been sensitive to external shocks. It depends heavily on tourism, remittances, and foreign aid.

Over the past decade, efforts to diversify have slowly shifted focus to domestic industries. As a result, inflation rates became more stable compared to previous years.

However, global events can still sway local prices, like when travel restrictions impact tourism.

Notably, the nation’s ability to manage a 7.6% inflation in 2022 shows resilience.

Continued tracking of inflation is vital for both local policymakers and international investors. Stabilizing these rates will remain a top priority for Cabo Verde’s economic growth.

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