Individual consumption needs up 3,7pc to $6 350: Zimstat
THE Total Consumption Poverty Line (TCPL) for Zimbabwe rose by 3,7 percent to $6 350, per person in August from $$6 126 in July.
According to the Zimbabwe National Statistics Agency (Zimstat), a TCPL of $6 350 represents the total income needed for an individual (with all their income added together), as a minimum for them not to be deemed poor.
This means that an individual required that much to purchase both non-food and food items as at August 2021.
“This represents an increase of 3,7 percent when compared to the July 2021 figure of $6 126,” said Zimstat.
The food poverty line (FPL) as at August 2021 stood at $4 516, which covers the minimum food basket needs cost per person.
“This represents an increase of 3,1 percent over the July 2021 figure of $4 379,” said the agency.
It explained that poverty datum lines vary by province as prices vary from place to place and that differences are explained by disparities in average prices in the provinces.
“The quantities of commodities consumed at base year in the minimum needs basket, which is consistent with the preferences of the poor individuals and households in Zimbabwe are fixed.
“The variations in the value of the basket are explained by changes in average prices,” said Zimstat.
Meanwhile, latest data from Zimstat has also shown that the country’s rate of annual inflation for the month of August 2021 slowed down to 50,24 percent from 56,37 percent in July. As measured by the all-items CPI, this means that prices increased by an average of 50,24 percent between August 2020 and August 2021.
On month-on-month basis, Zimstat said inflation rate in August 2021 was 4,18 percent, gaining 1,62 percentage points on the July 2021 rate of 2,56 percent.
This means that prices as measured by the all-items CPI increased by an average rate of 4,18 percent from July 2021 to August 2021.
Of late, annual inflation has been receding with fiscal and monetary authorities targeting an inflation rate below 25 percent by year-end.
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya has assured the nation that the parallel market exchange rate will not upset the current momentum of falling inflation as informal sector transactions account for only a small fraction of total payments.
The inflation spiral was immediately halted after the central bank introduced the Dutch Auction System for trading foreign currency in June last year, which successfully stabilised the Zimbabwe dollar.
Dr Mangudya has said the direction of the exchange rate will, going forward, be influenced by key
economic fundamentals, both internal and exogenous. — chronicle.cl.zw
