Mozambique’s inflation up 10.55 pct in Dec

Consumer inflation in Mozambique jumped 10.55 percent year-on-year in December, driven by higher prices of food, water and electricity, the country’s National Statistics Institute announced on Friday. The figure compared with a reading of 6.27 percent in November, news agency Reuters reported.

The average price of tomatoes in the African nation surged 28.1 percent year-on-year in December, while prices of rice and cooking oil increased by 12.9 percent and 11.5 percent respectively, Mozambican news agency AIM reported.

The high inflation levels recorded in 2015 were partly due to a sharp devaluation of the nation’s currency, the metical, against the U.S. dollar and the South African rand, the agency said. Many of Mozambique’s food imports are paid using either one of those currencies.

Last month Mozambique’s central bank raised its benchmark interest rate to the highest level since 2012 – to 9.75 percent – to curb soaring inflation in the country.