Zimbabwe’s Cost of Living Rises as Food Datum Line and Poverty Line Increase Sharply in January 2025

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HARARE — Zimbabwe’s Food Datum Line (FDL) for a single person rose by six percent to ZiG861.14 in January 2025, up from ZiG805.95 in December 2024, according to the latest data released by the Zimbabwe National Statistics Agency (Zimstat). The FDL represents the minimum amount required for an individual to afford a daily energy intake of 2,100 calories.

Similarly, the Total Consumption Poverty Line (TCPL), which measures the minimum income needed to avoid being classified as poor, also increased. The TCPL climbed to ZiG1,255.78 in January from ZiG1,156.67 in December 2024.

Zimstat explained, “The FPL for one person in January 2025 was ZiG861.14, meaning the minimum needs basket cost that much per person. The TCPL for one person was ZiG1,255.78 in January 2025, indicating the amount required to purchase both food and non-food items to avoid being deemed poor.”

The rise in the FDL and TCPL has been attributed to several factors, including escalating food prices and broader inflationary pressures. Monthly inflation in ZiG terms surged to 10.5 percent in January, a sharp increase from December’s 3.7 percent. In US dollar terms, the Consumer Price Index rose by 11.5 percent in January, compared to a 0.6 percent increase in December.

Zimbabwe operates under a dual currency system, with transactions conducted in both the local ZiG and foreign currencies, predominantly the US dollar. The high level of informality in the economy has further entrenched the use of foreign currency.

Economic analysts have pointed to the government’s crackdown on illegal imports as a contributing factor to rising prices. By reducing the supply of cheaper, illegally imported goods, the crackdown has increased demand for existing stocks, driving prices higher. Additionally, goods imported through formal channels now incur duties, which are passed on to consumers, further inflating costs.

Economic commentator Wendy Mpofu highlighted inflationary pressures, supply chain disruptions, and policy changes as key drivers of the increased FDL. “Zimbabwe has experienced high inflation rates in recent months, leading to a rise in the cost of living, including food prices. The increase in the FDL reflects this inflationary trend,” she said.

The rising cost of living continues to strain households, with many struggling to meet basic needs. As inflationary pressures persist, the government faces mounting challenges in stabilizing the economy and ensuring affordability for its citizens.

Reporting from Harare; additional details to follow as the situation develops.