Latest News Editor's Choice

News / Local

Cost of living rises as Zimdollar slips

by Staff reporter
29 Sep 2023 at 06:22hrs | Views
The cost of living has surged by an additional 4.8% to reach ZWL$95,462.53 per person in September, driven by the ongoing depreciation of the Zimbabwean dollar against the US dollar.

The country's currency has depreciated approximately 18% and 23% on the official and parallel forex markets, respectively, compared to last month's rates. This currency devaluation has led to persistent price increases as businesses and service providers adjust their prices to maintain the value of their goods and services.

The Zimbabwe National Statistics Agency (ZimStat) reported that the Food Poverty Line (FPL) increased by 3.9% to $73,235.85, while the Total Consumption Poverty Line (TCPL) rose by 4.8% in September 2023 compared to August 2023.

However, it's worth noting that both the TCPL and FPL are based on a standardized 2,100-calorie daily intake, which can vary significantly for individuals based on their habits, routines, and exercise. Food and education experienced the highest inflation rates, increasing by 0.33% and 0.25%, respectively, contributing to a month-on-month inflation rate of 1.0% in September 2023. The year-on-year inflation rate stood at 18.4% for September.

ZimStat explained that it has transitioned from an arithmetic aggregation method to a geometric aggregation method to calculate inflation due to the significant use of the US dollar in transactions. Inflation is rising primarily because of the continued depreciation of the local currency, which prompts retailers to adjust their prices to maintain their real earnings, according to economist Yona Menon Banda. The government has implemented measures to curb inflation, such as mopping up excess liquidity and requiring most fees and taxes to be paid in the local currency.

In related news, Taguma Mahonde, the director-general of ZimStat, who was recently arrested on charges of obstructing the course of justice, fraud, and corruption, has been remanded in custody until Tuesday pending a bail ruling.

Source - newsday
More on: #Zimdollar, #Slips, #Cost