Online Reporter
Business Reporter
ZIMBABWE remains resilient to global cost pressures after its ZiG annual inflation rate climbed by a marginal 0.3 percentage points to 4.7 percent in June, from the May figure of 4.4 percent.
The slight increase was driven primarily by rising costs in the housing and energy sectors, according to the latest Zimbabwe National Statistics Agency (ZimStat) figures.
The country’s domestic currency inflation remains largely under control despite mounting pressures from the Middle East wars and political tension affecting how the world trades.
Tensions in areas such as the Middle East, a key source of oil and gas, have caused problems for shipping routes.
Countries have had to re-route supply chains for safety instead of cost. This has made energy and transportation more expensive, exerting unprecedented pressure on prices.
In the face of external cost pressures, the Reserve Bank of Zimbabwe has maintained a tight monetary policy and high interest rate regime, which has kept inflation below 5 percent since dropping to a three-decade low in January.
Zimbabwe’s annual US dollar inflation rate rose slightly to 3.1 percent in June, similarly gaining 0,3 percentage points from the 2.8 percent recorded the previous month.On a month-on-month basis, the local currency trended upward as the monthly ZiG rate ticked up to 0,6 percent, a slight increase from the 0,5 percent seen in May.
Monthly US dollar inflation slowed down to 0.1 percent in June, after shedding 0.2 percentage points from May’s rate of 0.3 percent.
Despite these marginal adjustments, monthly consumer price growth for both currencies remains firmly below the one percent threshold, indicating a continued period of relative macroeconomic stability.
