Cape Verde Inflation Falls to 1.8% in April | Economic Update
Inflation in Cape Verde continued its downward trend this April, with the 12-month average rate slowing to 1.8%. According to the latest data released by the National Statistics Institute (INE), this marks a 0.2 percentage point decrease from the previous month.
Cooling Prices Across the Board
The Consumer Price Index (CPI) report highlights a broader stabilization of prices across the archipelago. Year-on-year inflation for April was recorded at 0.3%, a significant drop of 0.4 percentage points compared to March. Monthly variation remained stable, matching the figures seen in the previous 30-day period.
Core inflation—a key metric that excludes volatile categories like energy and unprocessed food—also saw a notable decline. It landed at 1.4%, down 0.6 percentage points from the March figures, reinforcing the trend of cooling price pressures in the domestic economy.
Global Tensions Threaten Future Stability
Despite the positive data from April, economic authorities remain cautious. Just last week, the Bank of Cape Verde (BCV) revised its annual inflation forecast upward, raising the estimate from 1.7% to 2.7% for the full year.
The central bank warned that while current figures are encouraging, global instability remains a major risk. Officials cited “the escalation of geopolitical tensions,” particularly the ongoing conflict in the Middle East, as a primary reason for the more pessimistic year-end outlook. These international factors could lead to higher import costs for the island nation, potentially reversing the recent slowdown in price hikes.
Image: Pexels – Tima Miroshnichenko
