Business Reporter
ZIMBABWE’s annual inflation rate receded to 75,2% in the period April 2023 signifying a considerable decline on the back of inflation targeted economic reforms ,Zimbabwe National Statistics Agency (ZIMSTAT) reported Wednesday.
This comes on the back on the back of reforms aimed at easing inflation pressures which include introduction of gold coins, mopping up of excess liquidity, targeted interest rates to contain speculative borrowing among other measures.
“The year-on-year inflation rate (annual percentage change) for the month of April 2023 as measured by the all items Consumer Price Index (CPI) was 75.2 percent.
“This means that prices as measured by the all items CPI increased by an average of 75.2 percent between April 2022 and April 2023,” said Zimstat.
However, month on month inflation rate for the period registered a significant increase of 2,4% which market experts have attributed to the ZWL depreciation on the local markets which has since breached a high of US$1: ZWL2 000.
“The month-on-month inflation rate in April 2023 was 2.4 percent gaining 2.3 percentage points on the March 2023 rate of 0.1%. This means that prices as measured by the all items CPI increased by an average of 2.4% from March 2023 to April 2023,” said Zimstat.
Inflation in Zimbabwe is normally triggered by movements in the exchange rates which exert perception pressures across the economy.
The month-on-month Food and Non-Alcoholic Beverages inflation rate was at -1,2% in April 2023, shedding 1,5% on the March 2023 rate of 0,3%.
In a bid to deal with inflationary pressures before they reach unsustainable levels, treasury has started supporting government contractors who are the main culprits in the economy causing rapid ZWL depreciation with foreign currency to minimize black market pressures being exerted from this constituency.
The Financial Intelligence Unit is scaling up its monitoring of especially the contractors who are paid US$ portion by the government to meet their import requirements.
On the other part, the Reserve Bank of Zimbabwe (RBZ) is working flat out to roll out the digital gold tokens, which were approved by Monetary Policy Committee.
The inflation rates are now being calculated through a blended formula which captures price movements in US$ and ZWL.
