In October 2024, Cape Verde’s inflation rate stood at 1.0%, according to data released by the National Statistics Institute (INE) on November 16. The Consumer Price Index (CPI) showed a monthly increase of 0.4%, up by 0.2 percentage points, compared to September.
Year-to-date, the CPI recorded an accumulated inflation rate of 1.6%, a rise of 0.3 percentage points compared to the same period in 2023. The annual rate of inflation, comparing October 2024 to October 2023, increased to 1.7%, reflecting a 0.7 percentage-point uptick from the prior month. Excluding volatile categories like energy and unprocessed food, underlying inflation registered an annual variation of 2.0%, marking a 0.6 percentage-point rise from September.
The CPI measures changes in the prices of a representative basket of goods and services consumed by the Cape Verdean population. By October, the accumulated inflation rate of 1.6% exceeded last year’s rate for the same period, while the 12-month average inflation rate remained steady at 1%.
Economic forecasts have recently been revised. The Bank of Cape Verde (BCV) lowered its inflation projection to an average of 1.1% for 2024, anticipating further declines to 0.8% in 2025 and 2026. These estimates are more optimistic than the government’s projection of 1.7% inflation for 2025 in its proposed State Budget. Meanwhile, the International Monetary Fund (IMF) forecasts a slightly higher rate of 2% for both this year and the medium term.