Cape Verde Inflation Rate YoY: January 2026 Sees Steepest Drop in Seven Months
Release date: February 17, 2026. Data period: January 2026. Source: Sigmanomics, official statistics[1].
Big-Picture Snapshot
Headline Figures
- January 2026 YoY inflation: 1.4%
- December 2025: 3.3%
- 12-month average: 2.1%
- Lowest since July 2025 (1.8%)
- Peak in recent trend: September 2025 (2.8%)
- Six-month range: 1.4%–3.3%
Drivers This Month
- Food prices: -0.7pp
- Energy: -0.4pp
- Transport: -0.2pp
- Housing: +0.1pp
Policy Pulse
Inflation fell well below the central bank's 2.5% target, marking a significant deviation from recent months.
Market Lens
Bond yields dipped on the surprise slowdown. The sharp drop in headline inflation prompted a modest rally in local debt, as investors recalibrated expectations for price pressures in the first quarter.
Foundational Indicators
Recent Trend
- November 2025: 1.6%
- October 2025: 2.2%
- September 2025: 2.8%
- August 2025: 2.7%
- July 2025: 1.8%
- June 2025: 2.3%
Historical Comparison
January's reading is the lowest since July 2025 and sits 0.7 percentage points below the 12-month average. The last time inflation was this subdued, global commodity prices were also easing.
Policy Pulse
The central bank's 2.5% target has now been undershot for two consecutive months, after a brief spike in December.
Market Lens
Currency markets showed muted reaction. The escudo remained stable, reflecting confidence in the inflation trajectory and policy stance.
Chart Dynamics
Drivers This Month
- Food: largest negative contributor
- Energy: continued drag
- Transport: minor downward effect
Market Lens
Equities saw little movement. Investors appear to be awaiting further data before adjusting risk positions in response to the inflation surprise.
Forward Outlook
Scenario Analysis
- Bullish (15–25%): Inflation remains below 1.8% through Q2 if food and energy costs stay subdued.
- Base (60–70%): Inflation stabilizes near the 2% mark as base effects fade and domestic demand steadies.
- Bearish (10–20%): Price pressures rebound above 2.5% if external shocks or supply disruptions re-emerge.
Risks and Catalysts
- Upside: Weather-related food supply shocks, global oil volatility
- Downside: Stronger currency, continued global disinflation
Data Source & Methodology
Figures sourced from Sigmanomics and official Cape Verdean statistics. Year-over-year inflation calculated using headline consumer price index, with monthly releases reviewed for consistency.
Closing Thoughts
Market Lens
Investor sentiment remains cautiously constructive. The sharp drop in inflation has not triggered major asset re-pricing, but the data reinforces confidence in the central bank's credibility and the economy's resilience.
Policy Pulse
With inflation now well below target, policymakers gain flexibility to support growth if needed, while monitoring for any renewed price pressures in coming months.
Key Markets Reacting to Inflation Rate YoY
Inflation readings in Cape Verde can influence a range of asset classes, from local equities to global currencies and digital assets. Below are select tradable symbols with verified Sigmanomics listings, each showing distinct sensitivity to inflation trends in emerging markets.
- AAPL — Global tech bellwether; often benefits from disinflationary environments via lower input costs.
- EURUSD — Key forex pair; reacts to inflation differentials and monetary policy shifts across regions.
- BTCUSD — Digital asset; sometimes viewed as a hedge against fiat currency debasement or inflation volatility.
| Year | Inflation YoY (%) | AAPL Trend |
|---|---|---|
| 2020 | 1.2 | Stable |
| 2021 | 1.7 | Upward |
| 2022 | 2.0 | Volatile |
| 2023 | 2.4 | Upward |
| 2024 | 2.1 | Stable |
| 2025 | 2.2 | Downward |
| 2026 (Jan) | 1.4 | Flat |
Periods of lower inflation have historically coincided with steadier performance for AAPL, while inflation spikes have sometimes preceded volatility.
FAQ
- What is the latest Inflation Rate YoY for Cape Verde?
- The most recent annual inflation rate for Cape Verde is 1.4% for January 2026, marking a significant drop from December's 3.3%.
- How does the January 2026 inflation figure compare to recent months?
- January's 1.4% reading is the lowest in seven months and well below the 12-month average of 2.1%.
- What factors contributed to the sharp decline in Cape Verde's inflation rate?
- Easing food and energy prices were the primary drivers behind the marked slowdown in annual inflation for January 2026.
Cape Verde's inflation rate in January 2026 fell to its lowest level since mid-2025, driven by broad-based price relief.
Updated 2/17/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- [1] Sigmanomics database, Cape Verde Inflation Rate YoY, official release February 17, 2026.
January's 1.4% inflation print marks a dramatic reversal from December's 3.3% and sits well below the 12-month average of 2.1%. The last six months saw inflation range from 1.6% to 3.3%, with January representing the sharpest single-month drop in the period.
Compared to September's 2.8% and August's 2.7%, the current figure signals a decisive cooling in price pressures. The trend since October has been downward, with only a brief uptick in December.