Family of six now requires ZW$1,19 mln for monthly consumption, annual inflation hits 34,8%

admin January 30, 2024

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Business Reporter

ZIMBABWE’s annual inflation rose to 34,8% in the period January 2024 on the back of a waning exchange rate and price increases in both currencies which experts have partly attributed to changes in the fiscal space.

Data released by the Zimbabwe National Statistics Agency (Zimstat) Monday shows that both monthly and annual inflation levels recorded significant increases.

“The year-on-year inflation rate (annual percentage change) for the month of January 2023 as measured by the all-items Consumer Price Index (CPI), was 34, 8%. This means that prices as measured by the all items CPI, increased by an average of 34, 8% between January 2023 and January 2024,” the organ said.

The month-on-month inflation rate was 6, 6% percent in January 2024, gaining 1,9% percentage points on the December 2023 rate of 4,7%.

A section of market watchers have since blamed the complications embedded in the 2024 National Budget delivered by Finance Minister, Prof Mthuli Ncube as a contributory factor into the year ahead. Presenting a trading update last week, beverages manufacturer Delta Corporation also expressed similar sentiments last week indicating tough times ahead.

During the period, the Food Poverty Line (FPL) which represents the overall cost of food for one person increased by 45,6%.

“The Total Consumption Poverty Line (TCPL) for one person was ZWL 198,981.37 in January 2024.Effectively, a family of six now requires a whooping ZW$1,19 million for monthly expenses,” the data reveals.

This means that an individual required that much to purchase both non-food and food items as at January 2024 in order not to be deemed poor, representing an increase of 41,9% when compared to the December 2024 figure of ZWL140, 252.59.

The surging inflation rates also come on the back of a waning US$: ZWL exchange rate over the last month in a development which has left experts piling pressure on authorities to urgently announce interventions to ease the depreciation.