Identifier
Created
Classification
Origin
10PRAIA19
2010-01-15 18:12:00
UNCLASSIFIED
Embassy Praia
Cable title:
CAPE VERDE RECORDS LOWEST INFLATION RATE OF THE LAST FOR
how-toVZCZCXRO9878 RR RUEHPA DE RUEHPA #0019 0151812 ZNR UUUUU ZZH R 151812Z JAN 10 FM AMEMBASSY PRAIA TO RUEHC/SECSTATE WASHDC 1907 INFO RUEHDK/AMEMBASSY DAKAR 0656 RUEHPA/AMEMBASSY PRAIA 2853
UNCLAS PRAIA 000019
SIPDIS
DEPARTMENT FOR AF/W
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD KMCA CV
SUBJECT: CAPE VERDE RECORDS LOWEST INFLATION RATE OF THE LAST FOR
YEARS
UNCLAS PRAIA 000019
SIPDIS
DEPARTMENT FOR AF/W
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD KMCA CV
SUBJECT: CAPE VERDE RECORDS LOWEST INFLATION RATE OF THE LAST FOR
YEARS
1. (U) Cape Verde recorded an overall inflation rate of just 1%
in 2009, the lowest annual inflation rate since 2005 and a 5.8%
reduction from 2008's rate. Cape Verde's National Statistics
Institute announced the news this week and noted the low
inflation was as a result of a good harvest year paired with
lower petroleum and commodity prices. In particular, the
negative variation on average of the consumer price index (CPI)
reflected price drops in the following sectors: communications
-11.2 %; transportation -9.9%; and leisure and recreation -7.6%.
2. (U) Over the last five years, Cape Verde has experienced some
noteworthy variation in inflation rates reflecting Cape Verde's
vulnerability to exogenous shocks and to international market
fluctuations:
2005: 0.4 %
2006: 4.8 %
2007: 4.4 %
2008: 6.8 %
2009: 1.0 %
3. The GOCV`s expectation for 2010 is that inflation will
continue to be low and stay close to the 1-2% range. Prices are
expected to increase slightly in 2010 in line with higher
commodity prices and more robust economic activity. Embassy
anticipates the inflation rate to remain low, but to exceed GOCV
predictions, based on the heavy debt burden included in the 2010
budget and the high import penetration as it persists in
reflecting for the most part the supply side developments,
notably import prices and exogenous shocks.
MYLES
SIPDIS
DEPARTMENT FOR AF/W
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD KMCA CV
SUBJECT: CAPE VERDE RECORDS LOWEST INFLATION RATE OF THE LAST FOR
YEARS
1. (U) Cape Verde recorded an overall inflation rate of just 1%
in 2009, the lowest annual inflation rate since 2005 and a 5.8%
reduction from 2008's rate. Cape Verde's National Statistics
Institute announced the news this week and noted the low
inflation was as a result of a good harvest year paired with
lower petroleum and commodity prices. In particular, the
negative variation on average of the consumer price index (CPI)
reflected price drops in the following sectors: communications
-11.2 %; transportation -9.9%; and leisure and recreation -7.6%.
2. (U) Over the last five years, Cape Verde has experienced some
noteworthy variation in inflation rates reflecting Cape Verde's
vulnerability to exogenous shocks and to international market
fluctuations:
2005: 0.4 %
2006: 4.8 %
2007: 4.4 %
2008: 6.8 %
2009: 1.0 %
3. The GOCV`s expectation for 2010 is that inflation will
continue to be low and stay close to the 1-2% range. Prices are
expected to increase slightly in 2010 in line with higher
commodity prices and more robust economic activity. Embassy
anticipates the inflation rate to remain low, but to exceed GOCV
predictions, based on the heavy debt burden included in the 2010
budget and the high import penetration as it persists in
reflecting for the most part the supply side developments,
notably import prices and exogenous shocks.
MYLES