Zim yearly, monthly inflation rates decline as economic reforms positive impact kicks in
Business Reporter
MONTHLY and annual inflation rates have declined significantly partly due to the raft of economic reforms employed by government towards the end of the first of the year , Zimbabwe National Statistics Agency (Zimstat) has reported.
The data for July 2023 confirms that both the monthly and yearly inflation recovered significantly.
“The month-on-month inflation rate in July 2023 was -15.3 percent shedding 89,8% on the June 2023 rate of 74,5%. This means that prices as measured by the all items CPI decreased by an average of -15.3 percent from June 2023 to July 2023.
“The year-on-year inflation rate as measured by the all items Consumer Price Index (CPI) was 101,3% down from 175,7% recorded in the previous month ,” said Zimstat.
This means that prices as measured by the all items CPI increased by an average of 101.3 percent between July 2022 and July 2023.
The figures resonate with other economic indicators in the economy such as exchange rates which have also been very stable lately in a development which has seen the ZW$ recovering against the greenback by almost 40% since last month.
Inflation in Zimbabwe is not always a reflection of economic fundamentals but is more influenced by dynamics on the exchange rate front with prices rising faster in tandem with the ZWL depreciation rates.
The positive developments are effectively a direct response of the economy to the raft of measures employed by both monetary and fiscal authorities around May 2023 when the value of the ZWL recorded significant losses.
