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Zimbabwe's yearly inflation increases to 21,6%

by Staff reporter
28 Nov 2023 at 05:12hrs | Views
In November, Zimbabwe's annual inflation rose to 21.6%, according to data released by the Zimbabwe National Statistics Agency (Zimstat) on Monday. This figure, measured by the all-items Consumer Price Index (CPI), represents a 3.8% increase compared to the 17.8% inflation recorded in October 2023.

Zimstat reported that prices, as gauged by the all-items CPI, increased by an average of 21.6% between November 2022 and November 2023. The month-on-month inflation rate for November 2023 was 4.5%, showing a 2% increase from the October 2023 rate of 2.5%.

The Food Poverty Line (FPL), indicating the amount needed for basic calories, stood at ZWL87,756.00. The Total Consumption Poverty Line (TCPL), which includes non-food consumption expenditures, was ZWL115,090 for one person in November 2023.

Inflation rates began to ease the previous month after authorities adopted blended inflation, considering the widely used currency in the dualized system. The month-on-month Food and Non-Alcoholic Beverages inflation rate for November 2023 was 4.9%, increasing by 2.5% from the October 2023 rate of 2.4%. The November 2023 month-on-month non-food inflation rate was 4.4%, gaining 1.9% from the October 2023 rate of 2.5%.

Economist Persistence Gwanyanya noted that current trends reflect a high level of dollarization in the economy. He emphasized the importance of investing in confidence-building measures, pointing out that 80% of transactions are now in US dollars, which have remained stable. While the ZWL prices have increased, their impact remains relatively insignificant. Gwanyanya suggested that managing ZWL depreciation depends on the foreign currency situation, complicated by the market's strong desire to preserve value. He advocated for maintaining a tight monetary policy stance and implementing mechanisms to improve the economy's liquidity situation.

Source - newzimbabwe