Angola’s annual inflation rate fell to single digits in July for the first time in nearly 11 years, signalling a significant easing of consumer price pressures.
The National Statistics Institute said consumer price growth slowed to 9.33% in July, down from 10.11% in June.
The institute attributed the continued decline to a more stable kwanza and improved domestic supplies of essential goods.
July marked the 24th consecutive month of slowing annual inflation, bringing price growth close to its lowest level since 2015.
The sustained cooling trend previously led the Banco Nacional de Angola to cut its benchmark interest rate to 15.75%.
However, falling overall inflation has not brought equal relief across all sectors. Education costs rose 25.24% year-on-year, while food and non-alcoholic beverages increased 10.40%.
Inflation also varied significantly across the country, ranging from 6% in Cuanza Norte to 13.09% in Cabinda.
On a monthly basis, consumer prices increased 0.75% in July, showing that household costs continue to rise, albeit at a slower pace.
Financial analysts and business leaders are now watching upcoming economic data for signs that lower inflation could pave the way for further reductions in borrowing costs.