Zimbabwe’s inflation shows signs of slowdown, but annual rate remains high

Business Writer

Zimbabwe’s latest inflation figures offer a mixed bag of news. While the month-on-month inflation rate dipped slightly in March 2024 compared to February 2024, the annual inflation rate remains stubbornly high.

The Consumer Price Index (CPI), a key measure of inflation, stood at 133.39 in March, compared to 127.17 in February.

This translates to a month-on-month inflation rate of 4.9 percent, down from 5.4 percent the previous month.

However, the year-on-year inflation rate, which compares prices in March 2024 to those in March 2023, paints a more concerning picture.

The CPI for March 2023 was 85.87, resulting in a significant year-on-year inflation rate of 55.3 percent.

This means that on average, prices have increased by over half in the past year. In February, annual inflation stood at 47,6 percent and has been on an upward trajectory for seven consecutive months fuelled by exchange rate depreciation.

While the slight decrease in the monthly inflation rate suggests a potential slowdown, the annual rate remains a major concern for Zimbabweans.

Food prices, a significant driver of inflation, saw a month-on-month rise of 8.1 percent in March, though this is also a slight decrease from February’s 9.8 percent increase.