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Zimbabwe's month-on-month inflation surges to 5.8% in September
30 Sep 2024 at 07:41hrs | Views
Zimbabwe's month-on-month inflation rate accelerated to 5.8% in September, a sharp rise from 1.4% in August, according to the latest data from the Zimbabwe National Statistics Agency (ZimStat). The increase is largely attributed to the rapid depreciation of the Zimbabwe Gold (ZiG) currency, which has been weakening in recent weeks amid a shortage of US dollars in the market.
The ZiG, which was introduced in April with much anticipation, has faced growing pressure, with speculation being blamed for its decline in value. The 4.4 percentage point jump in inflation marks the largest monthly rise since ZimStat began tracking inflation following the introduction of ZiG.
In its recent price statistics report, ZimStat noted that the rise in monthly inflation indicates that prices, as measured by the all-items ZiG Consumer Price Index (CPI), rose by an average of 5.8% between August and September this year.
ZimStat explained the calculation of month-on-month inflation as the percentage change in the price index for a given month compared to the previous month. For September, the CPI for food and non-alcoholic beverages had the most significant impact, contributing 1.5% to the overall inflation rate.
"The month-on-month inflation rate was 5.8% in September 2024, gaining 4.4 percentage points from the August 2024 rate of 1.4%. This means that prices, as measured by the all-items ZWG CPI, increased by an average of 5.8% between August and September 2024," ZimStat reported.
In addition to the ZiG inflation rate, ZimStat also reported that Zimbabwe's year-on-year inflation rate for September 2024, as measured by the all-items USD CPI, stood at 4.2%, highlighting price fluctuations in both local and foreign currency terms.
ZimStat also released updated figures for poverty lines, with the Food Poverty Line (FPL) for one person in September 2024 set at ZiG446.56. The FPL represents the minimum amount of money an individual needs to afford a daily intake of 2,100 calories. Additionally, the Total Consumption Poverty Line (TCPL) for one person was ZiG681.79, which includes non-food consumption expenses.
As the ZiG continues to face pressure and inflation rises, concerns grow over how the central bank and government will stabilize the currency and bring inflation back under control.
The ZiG, which was introduced in April with much anticipation, has faced growing pressure, with speculation being blamed for its decline in value. The 4.4 percentage point jump in inflation marks the largest monthly rise since ZimStat began tracking inflation following the introduction of ZiG.
In its recent price statistics report, ZimStat noted that the rise in monthly inflation indicates that prices, as measured by the all-items ZiG Consumer Price Index (CPI), rose by an average of 5.8% between August and September this year.
ZimStat explained the calculation of month-on-month inflation as the percentage change in the price index for a given month compared to the previous month. For September, the CPI for food and non-alcoholic beverages had the most significant impact, contributing 1.5% to the overall inflation rate.
In addition to the ZiG inflation rate, ZimStat also reported that Zimbabwe's year-on-year inflation rate for September 2024, as measured by the all-items USD CPI, stood at 4.2%, highlighting price fluctuations in both local and foreign currency terms.
ZimStat also released updated figures for poverty lines, with the Food Poverty Line (FPL) for one person in September 2024 set at ZiG446.56. The FPL represents the minimum amount of money an individual needs to afford a daily intake of 2,100 calories. Additionally, the Total Consumption Poverty Line (TCPL) for one person was ZiG681.79, which includes non-food consumption expenses.
As the ZiG continues to face pressure and inflation rises, concerns grow over how the central bank and government will stabilize the currency and bring inflation back under control.
Source - newsday
