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Zimbabwe’s month-on-month inflation goes up

ZIMBABWE’S month-on-month inflation for January gained 5.43 percent gaining 1.21 percentage points on the December 2020 rate of 4.22 percent, latest figures released this morning by the Zimbabwe National Statistical Office (Zimstat) reveal.

This means that prices as measured by the all items Consumer Price Index (CPI) increased by an average rate of 5.43 percent from December 2020 to January 2021.

The month on month Food and Non Alcoholic Beverages inflation rate stood at 7.84 percent in January 2021, gaining 1.30 percentage points on the December 2020 rate of 6.54 percent.

The month on month non-food inflation rate stood at 3.70 percent, gaining 1.07 percentage points on the December 2020 rate of 2.63 percent.

Inflation topped 837 percent last July, but fell to 761 percent in August following the introduction of foreign currency auction system in June that year, stemming inflation drivers arising from exchange rate movements and demand for foreign currency.

Price of basic commodities has steadily increased since the beginning of the year despite the local currency sustaining stability against the American dollar on the foreign exchange auction.

According to Zimstat, the year on year inflation rate (annual percentage change) for the month of January 2021 as measured by all items Consumer Price Index stood at 362.63 percent.

The CPI for the month ending January 2021 stood at 2,608.79 compared to 2,474.51 in Dec 2020 and 563.90 in Jan 2020.

In his 2021 National Budget statement, Finance Minister, Professor Mthuli Ncube set economic growth for the year at 7.4 percent citing a drop in inflation amongst the major drivers for the projection.

However, due to the persistence of COVID-19 pandemic which has had a direct impact on economic activity, a revision of set targets may be necessary.

The latest inflation figures from Zimstat mark the first time the agency has released monthly inflation figures during the relevant month following its migration from paper-based data collection and processing to a much efficient computerized system. 🔺

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