Zimbabwe's Monthly Inflation Rises By 0,4%

MONTHLY inflation surged to 0,4% in August 2024 on the back of a slightly waning exchange rate on the parallel market which has seen local currency prices responding to market dynamics.

Data published by the Zimbabwe National Statistics Agency (Zimstat) Monday shows the inflation slightly increased during the period but remained within sustainable margins.

"The weighted month-on-month inflation rate was 0.4% in August 2024, gaining 0.5 percentage points on the July 2024 rate of -0.1 percent," said the stats agency.

The US$ inflation rate for the period was 0, 2% gaining 0.3 percentage points on the July 2024 rate of -0.1 percent. The year-on-year inflation rate for the month of August 2024, as measured by the all-items USD Consumer Price Index (CPI), was 3.7%.

For the ZiG currency suffered harder blows during the period with month-on-month inflation rate reaching 1, 4% in August 2024, and gaining 1.5% on the July 2024 rate of -0.1 percent. This means that prices as measured by the all-items ZiG CPI, increased by an average of 1.4 between July 2024 and August 2024.

The current inflation trends come on the back of a waning parallel market exchange rate which currently maintains a mid- rate of around US$1: ZWG 18 with higher premiums being demanded depending on supply and demand factors.

Traditionally, markets have maintained sensitivity to any movement on the parallel market.

The Food Poverty Line (FPL) for one person in August 2024 was ZiG 405.41. FPL represents the amount of money that an individual requires to afford a daily minimum energy intake of 2,100 calories.

The Total Consumption Poverty Line (TCPL) for one person in August 2024 was ZiG 631.86. The TCPL is derived by adding the non-food consumption expenditures of an individual below the FPL.

The stats also show that Mashonaland East had the highest ZiG inflation rate of 2% followed by Mashonaland West and Manicaland at 1,8% respectively with Mashonaland Central experiencing the least inflation rate at 0,7%.

This article originally appeared on New Zimbabwe