The HeraldJanuary 2025 witnessed a sharp surge in USD inflation, with the month-on-month rate skyrocketing to 11.5 percent, a significant jump from the previous month’s 0.6 percent.
This rapid acceleration, representing a 10.9 percentage point gain, has raised concerns among economists and consumers.
The data, released by Zimbabwe National Statistics Agency, indicates that prices measured by the all-items USD Consumer Price Index (CPI) experienced a dramatic increase between December 2024 and January 2025.
“This sharp rise in USD inflation is a major concern,” stated Walter Mandeya of Trigrams Investments.
“It erodes purchasing power, particularly for low-income households, and can have a significant impact on the overall economy.”
The year-on-year USD inflation rate for January 2025 stood at 14.6 percent, further highlighting the inflationary pressures facing the economy. This figure represents a significant increase in prices over the past year.
While the USD inflation figures are alarming, it’s important to note that ZiG inflation also remains a significant challenge. The month-on-month ZiG inflation rate in January 2025 was 10.5 percent, driven by a 6.8 percent increase in Food and Non-Alcoholic Beverages and a 12.5 percent rise in non-food prices.
The Government and policymakers are likely to closely monitor the evolving inflation situation and consider appropriate measures to mitigate its impact on the economy and the livelihoods of Zimbabweans.
All eyes will be on Reserve Bank of Zimbabwe governor Dr John Mushayavanhu who is expected to present the 2025 Monetary Policy Statement soon.
Bongani Ndlovu