Tuesday August 12 2014
Angola Inflation Rate Edges Up in July
Isabel Felino | isabel.felino@tradingeconomics.com

Angola’s annual inflation rate rose slightly to 6.98 percent in July of 2014 from 6.89 percent in the previous month.

On a monthly basis, prices increased 0.61 percent in July of 2014, from 0.57 percent recorded in June. The highest price increase in July was recorded for furniture, household equipment and maintenance (1.41 percent from 1.27 percent in June), followed by alcoholic beverages and tobacco (1.26 percent from 1.12 percent); hotels, cafés and restaurants (0.90 percent from 0.79 percent); food and non-alcoholic beverages (0.43 percent from 0.40 percent); housing, water, electricity, gas and other fuel (0.81 percent from 0.21 percent); and health (0.61 percent from 0.33 percent), 

In contrast, prices decelerated for clothing and footwear (1.31 percent from 1.35 percent); transport (0.36 percent from 0.66 percent); recreation and culture (0.26 percent from 0.39 percent). Prices remained unchanged for communications (0.0 percent) and education (0.0 percent).

In July of 2014, the highest consumer price index variation month-over-month was registered in Namibe (0.36 percent), followed by Huíla (0.31 percent); Huambo (0.25 percent); Benguela (0.20 percent); Cabinda (0.15 percent); and Cunene (0.14 percent).




Tuesday July 29 2014
Angola Cuts Key Interest Rate
Joana Taborda | joana.taborda@tradingeconomics.com

At its July 28th meeting, the Central Bank of Angola decided to cut its benchmark interest rate by 50 bps to 8.75 percent aiming to stimulate credit to the economy as policymakers expect the inflation rate to decrease further.

It was the first time the central bank cut its key interest rate since November of 2013. The standing lending facility rate was reduced by 25 bps to 9.75 percent following a 25 bps cut in March. The liquidity absorption facility was also left on hold at 1.75 percent, following three rate hikes this year for a total increase of 100 basis points.

The annual inflation rate slowed slightly to 6.89 percent in June from 6.95 percent in May and the monthly rate eased to 0.57 percent.  

The central bank also said the LUIBOR overnight stood at 2.94 percent in June, down from 2.96 percent in the previous month. Credit to the economy surged 14.56 percent and the average exchange rate was recorded at 97.82 kwanzas per dollar.




Wednesday July 23 2014
Angola Inflation Rate Slightly Down
Isabel Felino | isabel.felino@tradingeconomics.com

The annual inflation rate in Angola edged down to 6.89 percent in June of 2014, from 6.95 percent recorded in May, and compared with 9.19 percent a year ago. It is the lowest inflation rate on record.

On a monthly basis, consumer prices decelerated to 0.57 percent in June of 2014 from 0.62 percent registered in May. Lower prices were registered for food and non-alcoholic beverages (0.4 percent in June from 0.53 percent registered in May), health (0.33 percent from 0.44 percent), transport (0.66 percent from 0.7 percent), recreation and culture (0.39 percent from 0.69 percent), hotels, cafes and restaurants (0.79 percent from 0.93 percent). Education and communication cost remained unchanged in June.

The highest inflationary pressure came from clothing and footwear (+1.35 percent mom), followed by furnishings, household equipment and routine maintenance of the house (+1.27 percent), alcoholic drinks and tobacco (+1.12 percent), other goods and services (+0.96 percent).

Among regions, the highest monthly inflation rate was recorded in Namibe (0.49 percent) in June of 2014, and the lowest in Cabinda (0.13 percent).


Wednesday June 25 2014
Angola Leaves Rates on Hold
Joana Taborda | joana.taborda@tradingeconomics.com

At its June 24th, 2014 meeting, Central Bank of Angola left its key policy rate unchanged at 9.25 percent for the seventh consecutive meeting.

The liquidity absorption facility rate was also left on hold at 1.75 percent, following last month’s increase. The standing lending facility rate was kept at 10 percent, following a 25 bps cut in March.

Annual inflation rate slowed again in May to 6.95 percent from 7.22 percent in April. In contrast, monthly inflation accelerated to 0.62 percent from 0.51 percent in the previous two months, but remained below the 0.87 percent recorded in the same month of 2013.

The central bank also said the LUIBOR overnight stood at 2.96 percent in May, down from 3.10 percent in the previous month and credit to the economy increased 1.22 percent. The average exchange rate was stable at 97.66 kwanzas per dollar.


Thursday June 12 2014
Angola Inflation Rate Down to Record Low
Isabel Felino | isabel.felino@tradingeconomics.com

Angola annual inflation rate eased slightly for the fourth straight month to 6.95 percent in May of 2014 from 7.22 percent in the previous month. It is the lowest rate on record.

On a monthly basis, consumer prices rose 0.62 percent in May of 2014, accelerating from a 0.51 percent increase in the previous month.

Cost of miscellaneous goods and services (1.72 percent in May from 1.04 percent in April), furnishings, household equipment and routine household maintenance (0.98 percent from 0.77 percent), restaurants and hotels (0.93 percent from 0.92 percent) and clothing and footwear (0.92 percent from 0.66 percent) recorded the highest increases. Prices of food and non-alcoholic beverages went up 0.53 percent in May from 0.47 percent in April and transport cost rose 0.7 percent (from 0.36 percent). In contrast, prices eased for alcoholic beverages and tobacco (0.76 percent in May from 0.82 percent in April), housing, water, electricity, gas and other fuels (0.13 percent from a 0.16 percent), and health (0.44 percent from 0.74 percent).

In May, the monthly inflation rate slowed in Benguela (0.19 percent from 0.24 percent in April), and Cabinda (0.09 percent from 0.15 percent). In contrast, higher prices were registered in Cunene (0.16 percent from 0.12 percent), Huambo (0.37 percent from 0.25 percent), Huíla (0.38 percent from 0.26 percent) and Namibe (0.44 percent from 0.23 percent).


Tuesday May 27 2014
Angola Raises Liquidity Absorption Facility
Joana Taborda | joana.taborda@tradingeconomics.com

At its May 26th, 2014 meeting, Angola’s central bank kept its key policy rate unchanged at 9.25 percent, but raised its liquidity absorption facility rate by 25 bps to 1.75 percent.

It was the third time this year the central bank raised its liquidity absorption facility rate, aiming to increase resources available for lending.

In April, credit to the economy rose 2.25 percent while the LUIBOR overnight decreased to 3.10 percent. The average exchange rate was stable at 97.88 kwanzas per dollar.

Later in April, the central bank Governor said there is room to reduce interest rates if consumer prices keep decelerating. In April, the inflation rate slowed to 7.22 percent from 7.32 percent in March, the lowest rate on record.


Monday May 19 2014
Angola Inflation Rate Slows in April
Isabel Felino | isabel.felino@tradingeconomics.com

Angola’s annual inflation rate eased for the third straight month to 7.22 percent in April of 2014 from 7.32 in the previous month and 9.11 percent one year earlier.

On a monthly basis, consumer prices in Luanda increased 0.51 percent in April of 2014, the same rate recorded in March.

Upward pressures came from cost of miscellaneous goods and services (1.04 percent), hotels, cafes and restaurants (0.92 percent), alcoholic beverages and tobacco (0.82 percent), furniture, household equipment and maintenance (0.77 percent). Cost of food and non-alcoholic beverages accelerated slightly (0.47 percent in April from 0.44 percent in March) and transport prices edged up 0.36 percent from 0.21 percent in March. In contrast, prices slowed for clothing and footwear (0.66 percent from 0.78 percent), housing, water, electricity, gas and other fuel (0.16 percent from 0.26 percent), health (0.74 percent from 0.85 percent) and recreation and culture (0.58 percent from 0.79 percent).

Among provinces, prices decelerated in Cabinda (0.15 percent in April from 0.19 percent in March) and Huambo (0.25 percent from 0.43 percent) and accelerated in Benguela (0.24 percent from 0.07 percent) and Huíla (0.26 percent from 0.08 percent).


Tuesday April 29 2014
Angola Leaves Monetary Policy Unchanged
Joana Taborda | joana.taborda@tradingeconomics.com

At its April 28th, 2014 meeting, Angola’s central bank left the benchmark interest rate on hold at 9.25 percent. The liquidity absorption and the standing lending facility rate where also left unchanged at 1.5 percent and 10 percent, respectively, following last meeting’s move.

Last month, the central bank rose the liquidity absorption rate for the second straight meeting and cut the standing lending facility, aiming to reduce the interest rates charged on credit to the economy.

In March, the LUIBOR Overnight was recorded at 3.31 percent, lower than 3.57 percent in February, while maturities of 3 and 12 months were 7.47 percent and 9.49 percent, respectively.

The average exchange rate remained stable at 97.61 kwanzas to the US dollar.


Wednesday April 16 2014
Angolan Inflation Rate Down To 7.32% in March
Isabel Felino | isabel.felino@tradingeconomics.com

The annual consumer prices in Angola decelerated for the second consecutive month to 7.32 percent in March of 2014, from 7.48 percent recorded in February of 2014.

On a month-on-month basis, the Luanda CPI increased 0.51 percent, compared to a 0.49 percent rise in the previous month but decelerated from 0.66 percent in the same month last year. 

Furnishings and household equipment cost increased the most by 1.20 percent in March from February of 2014. Also, higher prices were recorded for health (0.85 percent), recreation services and culture (0.79 percent), clothing and footwear (0.78 percent), alcoholic beverage and tobacco (0.65 percent) and food (0.44 percent). Prices for communication and education were unchanged.

For the first time, the statistical office reported monthly inflation data for six new regions in Angola: Benguela, Cabinda, Cunene, Huíla, Huambo and Namibe. The highest monthly inflation rate was recorded for Huambo at 0.43 percent, while the lowest rate was registered in Benguela (0.07 percent).


Monday March 31 2014
Angola Leaves Key Rate on Hold; Changes Lending and Absorption Facility Rates
Joana Taborda | joana.taborda@tradingeconomics.com

At its March 31st, 2014 meeting, central bank of Angola decided to leave the benchmark interest rate on hold at 9.25 percent, but raised the liquidity absorption rate by 25 bps to 1.5 percent and cut the standing lending facility rate by 25 bps to 10 percent.

The central bank rose the liquidity absorption rate for the second straight meeting. Last month, it increased the rate by 50 bps, but kept the lending facility rate unchanged. 

Today’s moves aim to reduce the cost of financial intermediation, mainly the interest rates charged on credit to the economy. 

In February, the LUIBOR Overnight was recorded at 3.57 percent, lower than 4.15 percent in January, while maturities of 3 and 12 months were 7.45 percent and 9.44 percent, respectively.