Zimbabwe's Annual Inflation Surges to 57,5% As ZiG Knocks Down Monthly Rate

30 April 2024
New Zimbabwe (London)
By Alois Vinga

THE yearly inflation rate for April 2024 increased to 57,5% on the back of expectations that it will decline significantly going forward owing to the impact of the newly introduced Zimbabwe Gold (ZiG) currency.

Presenting the latest stats Monday, the Zimbabwe National Statistics Agency (Zimstat) the year-on-year inflation rate (annual percentage change) for April 2024 as measured by the all-items Consumer Price Index (CPI), was 57,5%.

"This means that prices as measured by the allitems CPI, increased by an average of 57,5% between April 2023 and April 2024," the agency said.

In March 2024 the rate of annual inflation as measured by the all items CPI was 55,34%.

The month-on-month inflation rate was 2.9%percent in April 2024, shedding 2 % on the March 2024 rate of 4,9%.

This means that prices as measured by the allitems CPI, increased by an average of 2,9%between March 2024 and April 2024.

The month-on-month Food and Non-Alcoholic Beverages inflation rate was 4.2 percent in April 2024, shedding 3.9 percentage points on the March 2024 rate of 8.1 percent.

The April 2024 month-on-month non-food inflation rate was 2,4% shedding 0.6%on the March 2024 rate of 3%.

The Food Poverty Line (FPL) for one person in April 2024 was ZiG424.95.

One person's Total Consumption Poverty Line (TCPL) was ZiG 650.26 in April 2024. This means that an individual required that much to purchase non-food and food items as of April 2024 in order not to be deemed poor.

However, going forward the yearly and monthly inflation rate is expected to tumble significantly as the newly introduced ZiG currency is beginning to take its toll on exchange rates and price dynamics.

On Friday the 5th of April 2024, the Zimbabwe Reserve Bank introduced a new "structured currency" called ZiG to tackle the ongoing economic crisis in the country. The new currency, Zim Gold (ZiG), is backed by gold, and other precious minerals, and will circulate alongside other foreign currencies.

The ZiG currency is currently trading at a rate of 14:00 against US$1,00 and is also enjoying a stable exchange rate with less volatility so far.

Analysts believe that the new currency has already begun to shift the upward trends in monthly inflation which has begun to decline.

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