Mozambique’s headline inflation fell to 6.4% y/y in Aug 2026.

Lower is better. Lower inflation means savings and wages lose less buying power each month, so a lower figure is better. The latest reading for June 2026 is 7.5% y/y, up from 4.1% y/y a year earlier, a rise of 3.4 percentage points. It is the highest figure since Jul 2024, and sits well above the low of 3% y/y reached in January 2026. Inflation has therefore climbed through the first half of 2026 after that low.

Why it matters. At 7.5% y/y, a household spending the same amount as a year ago buys noticeably less food, fuel and transport, which hits low-income families hardest because they spend most of their income on basics. Firms face rising input costs and must decide whether to pass them on to customers. For the state, faster price growth erodes the real value of public wages and pressures the central bank to weigh tighter policy.