Zim inflation crisis: Call for government vigilanc...

Zim inflation crisis: Call for government vigilance and reform

Audrey Galawu

Economist Dr Prosper Chitambara has said government needs to remain vigilant of sustaining fiscal and monetary and institutional reforms that can bring sustained stability to the micro economy.

This comes as the Zimbabwe National Statistics has reported a 21.6% increase in annual inflation in November.

ZimStat revealed that the year-on-year inflation rate for November 2023, as measured by the all-items Consumer Price Index 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.

“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 which represents the amount of money that an individual requires for basic calories stood at ZWL$87 756.00,” ZimStat revealed.

Presenting at the November 2023, Monthly Statistics Dissemination Webinar, ZimStat acting director-general, Mationera Phiri said for one not to be deemed poor they now need ZWL$115 090 to purchase food and non-food commodities per month.

“The Total Consumption Poverty Line, which is derived by adding the non-food consumption expenditures of households below the FPL for one person in November 2023 was ZWL$115 090.

“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,” he said.

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%.

ZimStat data further showed that major categories of the consumer basket which include housing and utilities were at 2.5%, a decrease from 5% recorded in October, while food and non-food stood at 1.5%.