ANNUAL inflation in Zimbabwe increased to 21,6% in November. Data published by the Zimbabwe National Statistics Agency (Zimstat) Monday reveals that the year-on-year inflation rate for November 2023, as measured by the all-items Consumer Price Index (CPI), was 21, 6%.
The figure signifies a 3, 8% increase on the yearly inflation rate of 17,8% recorded in the month of October 2023.
“This means that prices as measured by the all items CPI, increased by an average of 21.6 percent between November 2022 and November 2023,” said Zimstat.
The month-on-month inflation rate for November 2023, was 4, 5%, gaining 2% points on the October 2023 rate of 2, 5%. The Food Poverty Line (FPL) which represents the amount of money that an individual requires for basic calories stood at ZWL87, 756.00
The Total Consumption Poverty Line (TCPL) which is derived by adding the non-food consumption expenditures of households below the FPL for one person in November 2023 was ZWL115 090. Inflation rates eased beginning last month following the move by the authorities to adopt blended inflation which weighs in the widely used currency within our dualised system.
The month-on-month Food and Non-Alcoholic Beverages inflation rate was 4,9% in November 2023, gaining 2,5% on the October 2023 rate of 2,4%. The November 2023 month-on-month non-food inflation rate was 4,4% gaining 1,9% on the October 2023 rate of 2, 5%.
Economist Persistence Gwanyanya said the current trends reflect the level of dollarization which the economy has gone through and highlighted the need to invest more in confidence building.
“The use of US$ has gone up to a level of 80% with most of the transactions being undertaken in un US$ which have been very stable. Whilst the ZWL prices have gone up, the impact remains quite insignificant.
“Going forward the ZWL depreciation will be well managed depending on the foreign currency situation which has been complicated by the market’s insatiable appetite to preserve value.
The tight Monetary Policy stance remains in force but there is also a need to put in place mechanisms which will lead to the improvement of the economy’s liquidity situation,” he said.
Source NewZimbabwe
