Angola’s Inflation Rate Climbs to Highest Since at Least 2011

Angola’s inflation rate rose to the highest in at least five-and-half years in June.

Inflation accelerated to 31.8 percent last month from 29.2 percent in May, the Luanda-based National Statistics Institute said in a statement on its website on Tuesday. Prices rose 3.3 percent in the month.

The Banco Nacional de Angola increased its key lending rate by 200 basis points to 16 percent on June 30, taking its policy tightening since January to five percentage points. The inflation rate has more than tripled in the last 12 months as a slump in crude oil prices cut government revenue and resulted in the kwanza weakening 26 percent against the dollar. Angola relies on oil for about 95 percent of its export income.

President Jose Eduardo dos Santos informed the International Monetary Fund two weeks ago his government wants to end talks about a loan to help the country cope with the slide in prices. Africa’s largest oil producer is struggling to meet debt payments because of the crash in crude prices, Dos Santos said on July 1.