Inflation came in at 19.8% in August, down from 21.4% in July. The August reading marked the lowest inflation rate since March 2020. Rising oil prices in recent months have boosted the Kwanzaa, keeping imported inflation at bay. In addition, fuel and food subsidies helped ease domestic price pressures.
Finally, consumer prices rose 0.76% in August from the previous month, slowing from the 0.81% increase recorded in July. The August result was the weakest reading since April 2015.
FocusEconomics committee members expect inflation to be 22.4% in 2022, 0.5 percentage point lower than last month’s forecast, and 13.7% in 2023.