/ 20 January 1999

MOZ HITS DEFLATION

MOZAMBIQUE registered minus 1,3% inflation in 1998, according to the Bank of Mozambique. Bank spokesman Adelino Pimpao, cited in Tuesday’s issue of the daily paper, Noticias, said the rate was much better than the government had expected, even in December. Prime Minister Pascoal Mocumbi had then told the Mozambican parliament that the government expected 1998 inflation to be around 2%. The new figure is an improvement over the inflation rate of 5,8% in 1997, and of 16,3% in 1996.