Cape Verde: Imported Goods Prices Rose 3.8% in June
In June, the prices of imported goods in Cape Verde saw a 3.8% increase, according to the National Statistics Institute (INE). This represents a notable decrease from the previous month's 7.1% rise, a drop of 3.3 percentage points. Meanwhile, the monthly price variation for exported goods stood at 2.5%, an increase of 1.8 percentage points from the prior month's 0.7%. The Terms of Trade Index (ITT) recorded a monthly variation of -1.3% in June 2026, showing an improvement of 4.7 percentage points compared to the previous month's -6.0%.
Within imports, both the Underlying and Volatile Indices increased by 3.8% and 3.7% respectively compared to the previous month. The rise in imported goods prices was primarily driven by increases in "Intermediate Goods" (0.6%), specifically "Parts for transport equipment" (19.1%) and "Fuels" (8.3%). Conversely, prices decreased in "Consumer Goods" (-0.7%), largely due to a drop in "Primary Food Products" (-5.3%), and "Capital Goods" (-2.6%), mainly influenced by a decrease in "machinery" prices (-2.4%).
On a year-on-year basis, imported goods prices surged by 13.9%. The Underlying and Volatile Import Indices rose by 14.4% and 12.5% respectively compared to June 2025. For exports, the price index was 153.1 in June 2026, a 2.5% increase from the previous month. The Underlying and Volatile Export Indices saw increases of 1.0% and 7.6% respectively month-on-month. The year-on-year variation for the Export Price Index decreased by 0.4%. The ITT stood at 104.0 in June 2026, a 1.3% decrease from the previous month, and a significant 12.5% decrease year-on-year.
The data from Cape Verde's National Statistics Institute indicates a moderation in the rate of increase for imported goods prices in June, following a higher surge in May. This shift, while positive in terms of slowing inflation for imports, is juxtaposed with an increase in exported goods prices and a declining Terms of Trade Index. The divergence suggests potential challenges for the nation's trade balance, as the cost of imports, though rising at a slower pace, may still outpace the value of exports over time. Analyzing the specific categories driving these changes, such as the rise in intermediate goods and fuels versus the decrease in consumer goods and capital machinery, provides insight into the underlying economic pressures. Future economic policy may need to balance the immediate need to manage import costs with strategies to enhance export competitiveness and manage the overall terms of trade to ensure sustainable economic growth.
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