Luanda: The increase in the supply of goods and services and the dynamism of the non-oil sector essentially determined the reduction of inflation to 15.7% at the close of 2025 in Angola, compared to 27.5% recorded in 2024, the governor of the National Bank of Angola (BNA), Manuel Tiago Dias, said Friday. Speaking to the press on the evolution of the inflation rate in 2025, released on Thursday by the National Institute of Statistics (INE), the Central Bank manager highlighted, in the non-oil sector, the evolution of the manufacturing industry.
According to Angola Press News Agency, the BNA governor pointed out, among the factors that were at the basis of the reduction in inflation, the exchange rate stability, which remained unchanged in 2025, resulting from the substantial increase in foreign currency at the market level. The BNA governor explained that the segments that still have a supply deficit, especially essential consumer goods, were covered by imports, underlining that from January to December 2025, commercial banks purchased approximately 8.8 billion US dollars worth of goods from the oil, diamond, and other sectors, compared to 7 billion US dollars in the same period of 2024.
Manuel Dias added that the monetary aggregate M2, the money supply in the economy in national currency, registered growth of around 13%, remaining below the inflation recorded for the year. He noted an increase in international reserves, which rose from 15.7 billion US dollars in 2024 to 15.9 billion US dollars in 2025.
The governor acknowledged that the inflation rate in the country is still high but mentioned that actions are underway to reduce it, with a view to bringing it closer to the rates observed in most countries of the Southern African Development Community (SADC). The National Consumer Price Index (IPCN) registered a variation of 15.70% in December 2025, representing a slowdown of 0.86 percentage points compared to the previous month and 11.80 percentage points compared to the same period in 2024.
The transportation sector registered the largest increase in the price index, with an annual variation of 19.18%, followed by health with 17.38%, housing, water, electricity, and fuels with 17.01%, and food and non-alcoholic beverages with 16.15%, according to the National Institute of Statistics (INE). For the reported annual inflation of 15.70%, the food and non-alcoholic beverages sector contributed 9.78%, miscellaneous goods and services 1.14%, transportation 0.95%, health 0.74%, and other sectors had contributions of less than 0.74%.
The highest annual inflation was recorded in the province of Cabinda with 25.54%.