Zimbabwe's newly introduced currency, the ZiG has knocked down monthly inflation to 0.6% on the account of significant price declines in the local unit, Zimbabwe National Statistics Agency (Zimstat) reported Wednesday.
The ZiG is the sixth currency to be introduced in 15 years as Zimbabwe battles run-away inflation.
The new currency is backed by gold, and other precious minerals, and will circulate alongside other foreign currencies.
The introduction of the ZiG saw the monthly inflation rate standing at 2.9% after shedding 2% on the March 2024 rate of 4.9%.
Presenting the Weighted Consumer Price Index (CPI) which tracks the inflation rate of the item at the middle of the price changes in the CPI basket said the inflation rate went down significantly.
"The month-on-month inflation rate was -0.6 percent in May 2024. This means that prices as measured by the all items Weighted CPI, decreased by an average of 0.6% between April 2024 and May 2024," said Zimstat.
Prices tracked in the ZiG currency alone reduced significantly during the period as all prices measured by the all items ZiG CPI, decreased by an average of 2. 4% between April 2024 and May 2024.
Since it began trading on the market, the ZiG has gained 1.9% against the US$.
In US$ terms, the month-on-month inflation rate was 0.1% in May 2024, shedding 0.7% on the April 2024 rate of 0.8% with year on year inflation rate for the month of May 2024 as measured by the all-items US$ Consumer Price Index (CPI), was 3.5%.
