Cape Verde Inflation Eases to 1.3% in August 2024
Cape Verde’s inflation rate continued its downward trajectory in August, according to the latest data released by the archipelago’s National Institute of Statistics (INE). The 12-month average inflation rate settled at 1.3%, marking a 0.2 percentage point decrease from July.
Slowing Growth Across Key Indicators
The Consumer Price Index (CPI), which tracks year-on-year price variations, stood at 0.8% for August—a 0.3 percentage point drop compared to the previous month. This slowdown suggests a cooling of price pressures across the island nation’s economy.
Core inflation, a metric that excludes volatile categories like energy and unprocessed food, mirrored the general trend. It recorded a year-on-year variation of 0.8%, edging down by 0.1 percentage points from the figure recorded in July.
Economic Headwinds and Forecast Adjustments
Despite the current decline, the short-term outlook remains cautious. In May, the Bank of Cape Verde (BCV) revised its annual inflation projections upward, increasing the year-end estimate from 1.7% to 2.7%.
Central bank officials attributed this adjustment to mounting global instability. The BCV warned that “the escalation of geopolitical tensions,” specifically the ongoing conflicts in the Middle East, could disrupt supply chains and drive up costs, potentially reversing the disinflationary progress seen throughout the summer.
Image: Pexels – Markus Winkler
