Vusumuzi Dube
Sunday News Reporter
Zimbabwe’s inflation rate for December 2024 has fallen within the 5 percent target set by the Reserve Bank of Zimbabwe (RBZ), marking significant prog ress towards achieving durable price stability.
This development aligns closely with the International Monetary Fund’s (IMF) projection of 7 percent.
According to the Zimbabwe National Statistical Agency (ZimStat), December’s inflation data showcased a promising trend across multiple metrics.
The Zimbabwe Gold (ZiG) Consumer Price Index (CPI) rose to 166.30 in December, up from 160.41 in November.
However, month-on-month inflation dropped sharply to 3.7 percent, an 8 percentage point decrease from November’s 11.7 percent.
The downward trend in inflation reflects the prevailing stability of prices and the local currency, the Zimbabwe Gold (ZiG), after the central bank devalued it by 43 percent in September.
Finance Minister Mthuli Ncube expects the ZiG month-on-month inflation to remain stable and average below 3 percent next year, backed by tight fiscal and monetary policies.
The inflation data also revealed that non-food sector inflation fell from 9.7 percent to 3.2 percent, while inflation in food and non-alcoholic beverages decreased significantly from 15.7 percent to 4.6 percent. The US dollar (USD) CPI showed modest movement, increasing to 108.91 in December from 108.22 in November.
Overall, Zimbabwe’s inflation rate falling within the target range signals progress towards achieving price stability. However, the country must maintain tight fiscal and monetary policies to sustain this progress.
Online Reporter