Cape Verdean Import and Export Prices Rise in May 2026
In May 2026, Cape Verde experienced a notable increase in the prices of both imported and exported goods, according to data from the National Institute of Statistics (INE). Import prices saw a significant rise, with the Underlying Index increasing by 7.5% and the Volatile Index by 6.3% compared to the previous month. This overall increase in import prices was driven by higher costs in "Consumer Goods" (up 3.1%), particularly "Processed Food Products" (up 3.3%), and "Intermediate Goods" (up 2.4%). The latter was largely due to a substantial 23.0% surge in "Other Processed Products" and a 14.3% rise in "Fuels". Conversely, "Capital Goods" prices decreased by 11.0%, mainly attributed to a 12.3% drop in the price of "machinery".
Year-on-year, import prices in May 2026 were 7.5% higher than in May 2025. The Underlying and Volatile import indices showed annual increases of 8.0% and 6.2%, respectively. Regarding exports, the price index rose by 0.7% from April to May 2026, reaching 149.4 points. The export Underlying Index climbed 2.6%, while the Volatile Index fell by 5.2% month-on-month. On an annual basis, export prices increased by 0.9% in May 2026 compared to May 2025. The Underlying Index for exports grew by 2.6% year-on-year, with the Volatile Index decreasing by 4.3%. The Terms of Trade Index (ITT) declined by 6.0% from the previous month and by 6.1% compared to May 2025.
The reported price fluctuations in Cape Verde's imports and exports highlight the sensitivity of island economies to global commodity markets and supply chain dynamics. The substantial increases in fuel and processed food prices, alongside a significant drop in capital goods, suggest potential inflationary pressures and shifts in investment patterns. The divergence between the Underlying and Volatile indices indicates that while some price changes may be temporary (volatile), others reflect more persistent trends. The decline in the Terms of Trade Index, where export prices are falling relative to import prices, could pose challenges for the nation's trade balance and economic growth over the next decade, particularly as global demand and geopolitical factors continue to influence commodity prices and trade flows.
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