Annual, monthly inflation further eases

Business Reporter

ZIMBABWE’S month-on-month inflation rate dropped to 1.8 percent in November after shedding 1.4 percentage points on the October rate of 3.2 percent.

Similarly, annual inflation rate as measured by the all-items Consumer Price Index (CPI) has also dropped drastically to 255 percent from 268 percent, according to the Zimbabwe National StatisticsAgency (ZimStat).

The sustained easing of inflationary pressures is in line with Government projections and buttresses the positive impact of the tight fiscal and monetary policy interventions adopted in the second half of the year.

Official records show that month-on-month inflation declined from a peak of 30.7 percent in July to 3.2 percent in October 2022, whilst annual inflation also fell from 285.1 percent in August, to 268.8 percent in October 2022.

In his 2023 National Budget presentation last Thursday, Finance and Economic Development Minister, Professor Mthuli Ncube, said national annual average inflation is projected to continue slowing down to double digit levels, underpinned by continued tight monetary and fiscal policy stance, stable foreign exchange market, strengthened Government procurement processes and implementation of measures to mop up excess liquidity such as the sale of gold coins and fairly stable global commodity prices.

“Supportive monetary and fiscal policies, as well as coordinated interventions by the authorities has been central in sustaining the current inflation deceleration and exchange rate convergency path,” he said.

“Going forward, this policy objective will be maintained and adjusted where necessary. In this regard, Government is setting a month-on-month inflation target range of between one percent to three percent, and a fiscal budget deficit of not more than 1.5 percent of Gross Domestic Product during 2023.”