Zim hardest-hit by food inflation

Zim Now Writer

Zimbabwe has ranked number one on the consumer price index list, recording an overwhelming consumer price index.

According to the World Economic Outlook report by the International Monetary Fund, consumer price indexes are index numbers that measure changes in the prices of goods and services purchased or otherwise acquired by households, which households use directly, or indirectly, to satisfy their own needs and wants.

Zimbabwe was ranked number one with a CPI projection of 561.0 followed by Sudan with 145.5 and South Sudan with 54.8.

High consumer prices affect low-income earners leading to a decline in real income and increasing income inequality within the society.

As a result, the most immediate and tangible effect of high consumer prices is the strain it puts on individuals and households.

Essentials like food, shelter, and healthcare become increasingly pricey, potentially driving vulnerable people further into poverty.

Meanwhile, the Food Security Update by the World Bank has revealed that since the last update on March 28, 2024, the agriculture and export price indices closed 3% higher and 8% higher, respectively, while the cereal price index closed at the same level.

Domestic food price inflation remains high in low- and middle-income countries.

Zimbabwe stands on number one on year-on-year real food inflation with 37% and number three on nominal food inflation with 84% inflation.

According to the update, unhealthy ultra-processed foods such as instant noodles and sodas are increasing in prevalence and affordability.

Zimbabwe has declared a disaster for agriculture amid the ongoing drought brought about by the current El Niño, with more than 2.7 million people (one-sixth of the country’s population) lacking adequate food because of low yields.

The El Niño−induced drought has resulted in below-average rainfall in more than 80 percent of the country.

Zimbabwe’s declaration follows the actions of neighboring countries. Zambia and Malawi also declared a disaster with, Malawi declaring the disaster over in 23 of its 28 districts.