Chronicle EditorOliver Kazunga, Senior Business Reporter
ZIMBABWE’S year-on-year inflation slowed down to 659,4 percent for the month of September 2020 on the back of progressive macro-economic policies that the Government is implementing.
According to latest data from the Zimbabwe National Statistics Agency (Zimstat), the country’s rate of annual inflation in September stood at 659,4 percent compared to 761 percent in August.
“This means that prices as measured by the all items Consumer Price Index increased by an average of 659,4 percent between September 2019 and September 2020,” said the agency.
Zimstat also said month-on-month inflation in September receded to 3,83 percent shedding 4,61 percentage points on the August rate of 8,44 percent.
Prior to Government’s intervention through the Reserve Bank of Zimbabwe (RBZ), more than $8 billion was circulating outside formal monetary systems and this was cited as one of the major factors fuelling price increases and instability on the foreign exchange markets.
Against this background, Government stamped out illicit transactions by mobile money agents.
To promote macro-economic stability as well as containing inflationary pressures, RBZ towards the end of June introduced a foreign currency auction system and capped withdrawal limits for mobile money transactions.
Association for Business in Zimbabwe chief executive officer, Mr Victor Nyoni, said as business community they are happy that inflation was being tamed on account of the success of the weekly Foreign exchange auction system.
“As the business community, we are excited that inflation has been tamed. Clearly, this is because of the success of the auction system introduced by the financial authorities in the country.
“From the business perspective foreign currency supply and allocation has tremendously improved,” he said.
Mr Nyoni said this has ensured that business operations are uninterrupted and thus enterprises should now work on generating more and more foreign currency in order to sustain the foreign currency aution system.
“Low inflation naturally brings about predictability in the economy. Businesses and everyone must celebrate this.
“Government must continue in its tight management of expenditure and avoid anything that could lead to high inflation coming back,” he said.
“The good prospects in the agricultural sector is a plus for Zimbabwe. So, yes the nation must celebrate the economic developments in the country.”
In a separate interview, financial market analyst Mr George Nhepera said while the reduction was commendable, it is still early to be celebrated taking into account that regional peers have single digit inflation. – @okazunga
Online Reporter