Angola’s inflation climbed to a four-month high of 11.25% YoY in June following the government’s decision to cease defending the national currency, the kwanza, and to terminate gasoline subsidies. A pause in USD sales in April and May resulted in the kwanza depreciating by 39%. With a new governor, Angola’s central bank is contemplating revising its inflation target from 9% to 11% for the end of 2023. Fitch predicts the weakening kwanza, coupled with Angola’s dependency on imported food, will contribute to an average inflation rate of 14.7% in 2023, rising to 17.1% in 2024.