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Zimbabwe's inflation surges to 11.6% in January 2025
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Zimbabwe's weighted month-on-month inflation rate surged by 10.5 percentage points in January 2025, reaching 11.6 percent from 1.1 percent in December 2024, according to figures released by the Zimbabwe National Statistics Agency (ZimStat).
Inflation, which measures the rate at which prices rise or fall over a given period, does not necessarily indicate decreasing prices when the rate declines but rather a slower pace of increase.
In an update issued yesterday, ZimStat attributed the month-on-month inflation spike primarily to increases in food and non-alcoholic beverage costs, which contributed 4.7 percent, followed by housing, water, electricity, gas, and other fuels, which contributed 3.9 percent.
"The weighted month-on-month inflation rate was 11.6 percent in January 2025, gaining 10.5 percentage points on the December 2024 rate of 1.1 percent," said ZimStat.
The agency also reported that the United States dollar (USD) month-on-month inflation rate climbed to 11.5 percent, a 10.9 percentage point increase from December 2024's 0.6 percent. The Zimbabwe Gold (ZWG) currency month-on-month inflation rate stood at 10.5 percent, rising by 6.8 percentage points from 3.7 percent in the previous month.
During the review period, ZimStat highlighted that the ZWG Consumer Price Index (CPI) for housing, water, electricity, gas, and other fuels had the largest impact on inflation, contributing 6.3 percent, followed by food and non-alcoholic beverages at 2.4 percent.
The Treasury had projected a single-digit inflation rate for 2025 as part of efforts to maintain exchange rate stability and a conducive business environment. However, the current rate surpasses projections, creating fiscal pressures due to rising government expenditure without a proportional increase in revenue.
Economic analysts warn that inflation volatility could result in higher interest rates, escalating borrowing costs, and worsening fiscal deficits. National University of Science and Technology (NUST) economist, Mr. Stevenson Dlamini, attributed the inflation surge to declining production levels and the lingering effects of the El Niño-induced drought in 2024.
"The observed inflation can be a result of reduced production due to the increased cost of doing business as well as depressed production from the agriculture sector," said Mr. Dlamini.
Meanwhile, ZimStat reported that the Food Poverty Line (FPL) for one person in January 2025 was ZWG 861.14. The FPL represents the minimum amount an individual requires to afford a daily energy intake of 2,100 calories. Additionally, the Total Consumption Poverty Line (TCPL) for one person stood at ZWG 1,255.78 in January 2025.
Inflation, which measures the rate at which prices rise or fall over a given period, does not necessarily indicate decreasing prices when the rate declines but rather a slower pace of increase.
In an update issued yesterday, ZimStat attributed the month-on-month inflation spike primarily to increases in food and non-alcoholic beverage costs, which contributed 4.7 percent, followed by housing, water, electricity, gas, and other fuels, which contributed 3.9 percent.
"The weighted month-on-month inflation rate was 11.6 percent in January 2025, gaining 10.5 percentage points on the December 2024 rate of 1.1 percent," said ZimStat.
The agency also reported that the United States dollar (USD) month-on-month inflation rate climbed to 11.5 percent, a 10.9 percentage point increase from December 2024's 0.6 percent. The Zimbabwe Gold (ZWG) currency month-on-month inflation rate stood at 10.5 percent, rising by 6.8 percentage points from 3.7 percent in the previous month.
During the review period, ZimStat highlighted that the ZWG Consumer Price Index (CPI) for housing, water, electricity, gas, and other fuels had the largest impact on inflation, contributing 6.3 percent, followed by food and non-alcoholic beverages at 2.4 percent.
The Treasury had projected a single-digit inflation rate for 2025 as part of efforts to maintain exchange rate stability and a conducive business environment. However, the current rate surpasses projections, creating fiscal pressures due to rising government expenditure without a proportional increase in revenue.
Economic analysts warn that inflation volatility could result in higher interest rates, escalating borrowing costs, and worsening fiscal deficits. National University of Science and Technology (NUST) economist, Mr. Stevenson Dlamini, attributed the inflation surge to declining production levels and the lingering effects of the El Niño-induced drought in 2024.
"The observed inflation can be a result of reduced production due to the increased cost of doing business as well as depressed production from the agriculture sector," said Mr. Dlamini.
Meanwhile, ZimStat reported that the Food Poverty Line (FPL) for one person in January 2025 was ZWG 861.14. The FPL represents the minimum amount an individual requires to afford a daily energy intake of 2,100 calories. Additionally, the Total Consumption Poverty Line (TCPL) for one person stood at ZWG 1,255.78 in January 2025.
Source - The Chronicle
