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Zimbabwe's ZiG knocks down monthly inflation

by Staff reporter
30 May 2024 at 08:57hrs | Views
Zimbabwe's newly introduced currency, the ZiG, has had a notable impact on monthly inflation, reducing it to 0.6%, according to a report by the Zimbabwe National Statistics Agency (Zimstat) released on Wednesday.

The ZiG marks the sixth currency introduced in the past 15 years as Zimbabwe contends with rampant inflation. Backed by gold and other precious minerals, it will circulate alongside existing foreign currencies.

Following the introduction of the ZiG, the monthly inflation rate dropped to 2.9%, marking a decrease of 2% from the March 2024 rate of 4.9%.

Zimstat, presenting the Weighted Consumer Price Index (CPI) which monitors inflation based on the average price changes in the CPI basket, reported a significant decline in inflation.

"The month-on-month inflation rate was -0.6 percent in May 2024. This indicates that prices, as measured by the all items Weighted CPI, decreased by an average of 0.6% between April 2024 and May 2024," stated Zimstat.

Prices denoted in the ZiG currency alone notably decreased during this period, with all prices measured by the all items ZiG CPI decreasing by an average of 2.4% between April 2024 and May 2024.

Since its introduction to the market, the ZiG has appreciated by 1.9% against the US dollar. In US dollar terms, the month-on-month inflation rate for May 2024 was 0.1%, a decrease of 0.7% from the April 2024 rate of 0.8%. The year-on-year inflation rate for May 2024, as measured by the all-items US dollar Consumer Price Index (CPI), stood at 3.5%.

Source - newzimbabwe