Inflation slows down, again

Zimbabwe National Statistics Agency (Zimstat) on Monday said annual inflation slowed to 75,6 percent in August from 101, 3 percent in July.

Zimstat Director General, Mr Taguma Mahonde said, “The month-on-month inflation rate in August 2023 was -6.2 percent gaining 9.1 percentage points on the July 2023 rate of -15.3 percent.”

Inflation refers to the rate at which prices are increasing, while a fall in inflation does not, however, mean prices are decreasing, but reflects the slow pace in price adjustments.

The month-on-month inflation rate is given by the percentage change in the index of the relevant month compared with the index of the previous month.

Mr Mahonde said the year-on-year inflation rate for August 2023 was 77,2 percent.

The Food Poverty Line (FPL) for one person was at $70,461.00 while the Total Consumption Poverty Line (TCPL) for one person was at $91,063.00 in August 2023

The food poverty line (FPL) represents the amount of money that an individual requires to afford daily minimum energy intake of 2 100 calories.

In his 2024 Budget Strategy Paper, Finance and Economic Development Professor Mthuli Ncube said Zimbabwe is expected to register an average economic growth rate of five percent over the next three years, benefitting from a stable exchange rate and lower inflation rates.

Prof Ncube projected the economy to expand by 5,2 percent next year and five percent in 2025 and 2026; all above the National Development Strategy 1 (NDS1) annual average targets. Prof Ncube is also targeting annual inflation rates of 39,2 percent 11,5 and 8,3 in 2024, 2025, and 2026 respectively.

“The 2024 macro-fiscal framework seeks to sustain this positive economic growth trajectory, through among others, stabilising the exchange rate and achieving lower inflation rates, addressing the high national input costs and low productivity levels affecting the competitiveness of domestic products and sustaining a positive external sector balance,” said Minister Ncube.