News / National
Zimbabwe's agric producer prices surge 36.4%
01 Jul 2025 at 08:03hrs | Views
Zimbabwe's agricultural producer prices spiked sharply in May 2025, with the Zimbabwe National Statistics Agency (ZimStat) reporting a 36.4% year-on-year (YoY) increase in the Producer Price Index for Agriculture (PPIA), signalling growing inflationary pressure across the farming sector.
In a statement released Friday, ZimStat said:
"The year-on-year rate of change for the US$-denominated PPIA stood at 36.4% in May 2025, meaning farm gate prices have risen by more than a third compared to May 2024."
The PPIA tracks the average change in producer prices received by farmers for their output, making it a critical indicator of inflation trends within the agricultural sector.
Analysts say the surge reflects deepening cost pressures driven by expensive inputs, currency instability, and seasonal shifts in supply.
On a month-to-month basis, producer prices also continued their upward trajectory. ZimStat noted that agricultural prices rose by 1.1% between April and May 2025, compared to a 0.2% rise recorded the previous month.
"This acceleration represents a gain of 0.9 percentage points, suggesting renewed short-term inflation for agricultural commodities," ZimStat explained.
Agricultural economist Tinashe Chikomba said the data highlights serious economic pressures facing both producers and consumers.
"A 36% annual jump in producer prices is not just about higher earnings for farmers; it often reflects serious structural costs in the production process," Chikomba said.
"Fertiliser, seed, fuel, and transport have all gone up in US$ terms. These figures should trigger urgent policy reviews, especially around input support and post-harvest handling."
Chikomba cautioned that the ripple effect of rising farm gate prices could soon be felt by consumers, particularly in urban areas where households spend a large share of their income on food.
"The government needs to keep a close watch on this trend, especially ahead of the next planting season," he added.
ZimStat said it will continue monitoring price developments and regularly publish the PPIA to support informed decision-making across Zimbabwe's agricultural value chain.
In a statement released Friday, ZimStat said:
"The year-on-year rate of change for the US$-denominated PPIA stood at 36.4% in May 2025, meaning farm gate prices have risen by more than a third compared to May 2024."
The PPIA tracks the average change in producer prices received by farmers for their output, making it a critical indicator of inflation trends within the agricultural sector.
Analysts say the surge reflects deepening cost pressures driven by expensive inputs, currency instability, and seasonal shifts in supply.
On a month-to-month basis, producer prices also continued their upward trajectory. ZimStat noted that agricultural prices rose by 1.1% between April and May 2025, compared to a 0.2% rise recorded the previous month.
"This acceleration represents a gain of 0.9 percentage points, suggesting renewed short-term inflation for agricultural commodities," ZimStat explained.
Agricultural economist Tinashe Chikomba said the data highlights serious economic pressures facing both producers and consumers.
"A 36% annual jump in producer prices is not just about higher earnings for farmers; it often reflects serious structural costs in the production process," Chikomba said.
"Fertiliser, seed, fuel, and transport have all gone up in US$ terms. These figures should trigger urgent policy reviews, especially around input support and post-harvest handling."
Chikomba cautioned that the ripple effect of rising farm gate prices could soon be felt by consumers, particularly in urban areas where households spend a large share of their income on food.
"The government needs to keep a close watch on this trend, especially ahead of the next planting season," he added.
ZimStat said it will continue monitoring price developments and regularly publish the PPIA to support informed decision-making across Zimbabwe's agricultural value chain.
Source - Newsday
