Month-on-month inflation sheds 0,35%

ZIMBABWE’s month-on-month inflation rate dropped to 17,72 percent in September, shedding 0,35 percentage points on the August rate of 18,07percent.

The Zimbabwe National Statistics Agency (Zimstat) revealed this in its latest report on month-on-month inflation released yesterday.

“The month-on-month inflation rate in September 2019 was 17,72 percent, shedding 0,35 percentage points on the August 2019 rate of 18,07 percent.

“This means that prices as measured by the all items Consumer Price Index (CPI) increased by an average rate of 17,72 percent from August 2019 to September 2019,” it said.

Zimstat also said the month-on-month food and non-alcoholic beverages inflation rate stood at 19,55 percent in September, gaining 1 percentage point on the August 2019 rate of 18,55 percent.

“The month-on-month non-food inflation rate stood at 16,63 percent, shedding 1,16 percentage points on the August 2019 rate of 17,79 percent,” it said.

In the 2019 National Budget Review statement tabled early August, Finance and Economic Development Minister Professor Mthuli Ncube suspended the publication of year-on-year inflation figures until February next year.

He said the publication of year-on-year inflation statistics was being deferred to allow for the building up of data of prices in mono-currency for a period of 12 months to February 2020. 

The suspension of year-on-year inflation is not a new phenomenon to Zimbabwe as the country once did it when the multicurrency system was introduced in February 2009. 

In the reforms progress report for the month of October released this week, Prof Ncube said foreign exchange market rates and inflationary pressures are expected to ease as Government continues implementing macro-fiscal stabilisation strategies.

He said this would see the economy emerging from the woods in 2020 and beyond riding on the ongoing reforms. 

“Continued implementation of macro-fiscal stabilisation measures are expected to stabilise the foreign exchange market and inflationary pressures,” said Prof Ncube.

Meanwhile, the economy is projected to grow by 4,6 percent next year, premised on the ongoing reform initiatives and broader positive assumptions in the domestic sector and favourable global trade indicators.

Despite the prevailing economic headwinds linked to severe shocks related to climate change, Government, in its 2020 Pre-Budget Strategy Paper (BSP), is optimistic that the economy will regain solid footing with inflation expected to drop significantly to a single digit on monthly basis. 

The 2020 BSP is meant to guide and facilitate discussions on policy direction for the coming year’s national budget, consistent with the objectives of the Transitional Stabilisation Programme (TSP) and aspirations of Vision 2030. —