Praia, Aug. 14, 2025 (Lusa) - Cabo Verde recorded year-on-year inflation of 2.7% in July, 0.9 percentage points more than in June, the National Statistics Institute (INE) announced on Thursday, releasing the Consumer Price Index (CPI).

Twelve-month average inflation stood at 1.9%, 0.1 percentage points higher than in the previous month.

The underlying inflation indicator (total index excluding energy and unprocessed food) showed a year-on-year change of 3.1%, 0.8 percentage points up on the previous month.

This year, the accumulated rate of change in the CPI up to June is 2.2%, 1.4 percentage points higher than in the same month of the previous year, INE said.

In May, the Bank of Cabo Verde (BCV) revised upwards its inflation outlook (12-month average) to 1.8% (2025) and 1.4%  (2026), "below 2 %, the reference value for price stability", but above the 0.8 % forecast for both years in November 2024, it said.

The inflation revision reflected "the incorporation of more recent data with a higher than expected increase in prices, especially for food and beverages in international markets," as well as "some expected volatility in energy prices, influenced by geopolitical factors and domestic pressures associated with the prices of some services," the BCV explained.

Inflation in Cabo Verde is historically anchored to Europe as it is the country's main supplier.

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