Chronicle Editor
Sikhulekelani Moyo
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THE country’s month-on-month inflation rate has jumped to 15,7 percent this month, after gaining 13,3 percentage points from about 2,4 percent recorded in April, according to the Zimbabwe National Statistics Agency (ZimStat).
The recent rapid depreciation of the Zimbabwe dollar against the greenback has been cited as a major factor, a situation that has resulted in the loss of consumer purchasing power, prompting authorities to adopt drastic measures to restore macro-economic stability. This comes at a time when most traders are now preferring to transact in the US Dollar, in return, thereby impacting prices and business cost structures.
The month-on-month inflation rate is a critical economic indicator that is derived from the percentage change in the index of the relevant month compared with the index of the previous month.
In his presentation on the monthly statistics highlights on Friday, ZimStat director-general, Mr Taguma Mahonde, said the year-on-year inflation rate of the month of May as measured by the Consumer Price Index (CPI) was 86,5 percent. “The month-on-month inflation rate in May was 15,7 percent gaining 13,3 percent points on the April rate of 2,4 percent,” he said.
“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. CPI was 324,63 in May, 280,48 in April, and 174,03 in May 2022”.
The CPI for food and non-alcoholic beverages had the highest month-on-month inflation rate of 25,9 percent followed by health at 14,8 percent. The food poverty line (FPL) represents the amount of money that an individual requires to afford a daily minimum energy intake of 2 100 calories.
The FPL for one person in May 2023 was $30 109. For poverty lines, ZimStat makes use of a consumer basket for the poor.
Total Consumption Poverty Line (TCPL) for one person was $39 927,00 in May 2023. The TCPL is derived by adding the non-food consumption expenditures of poor households to the FPL.
The month-on-month rate of change in April 2023 was 7,2 percent gaining 1,9 percentage points on the March 2023 rate of 5,3 percent. Month-on-month rate of change for the Producer Price Index for Agriculture in April 2023 was 6,1 percent gaining 3,0 percentage points on the March 2023 rate of 3,1.
The month-on-month Civil Engineering Material Price Index (CEMPI) rate of change was at 8,0 percent in April 2023 gaining 2,7 percentage points on the March 2023 rate of 5,3 percent.
The month-on-month Civil Engineering Plant Price Index (CEPPI) rate of change was 3.0 percent in April 2023 gaining 2,0 percentage points on the March 2023 rate of 1,0 percent.
Meanwhile, ZimStat has revealed that the trade deficit for April was US$143,8 million, a 37,3 percent improvement from a deficit of US$229,2 million in March. Exports in the month of April increased by 7,6 percent to US$554,6 million from US$515,3 in March. Imports also decreased by 6,2 percent in April to US$698,5 million from US$744,5 million in March.
According to the statistics, the main exports by broad economic category where industrial supplies constituting 89,4 percent followed by fuel and lubricants accounting for 4,3 percent.
The main imports by broad economic category where industrial imports constituting 32,8 percent, capital goods 22,9 percent and fuel and lubricants accounting for 15,4 percent.
— @SikhulekelaniM1
Online Reporter