Resurgent inflation pushes cost of living up

RESURGENT inflationary pressures have pushed the cost of living up with monthly inflation gaining 9,2 percentage points to 15,5 percent this month, according to the Zimbabwe National Statistics Agency (Zimstat).

The situation has been compounded by the disruption in global commodity supply chains induced by the raging Russia-Ukraine war as well as speculative parallel market exchange rate activity, economic experts say.

While the official exchange rate has remained relatively stable at around US$1:ZWL$159, the parallel market rate has soared towards US$1:ZWL$350 and above in some instances.

In its update, Zimstat said the total consumption poverty line (TCPL) for Zimbabwe stood at $11 363,46 per person in April 2022, representing an increase of 17,1 percent when compared to the March 2022 figure of $9 708,15.

TCPL presents the least amount of money an individual or family needs to cover their food, rentals, clothing and other essentials.

“The month-on-month inflation rate in April 2022 was 15,5 percent gaining 9,2 percentage points on the March 2022 rate of 6,3 percent,” said ZimStat.

This comes as the Zimbabwe dollar is losing grip against the United States dollar with the local currency trading at $159,3 this week at the forex auction platform compared to last week’s rate of $155,1 to the greenback.

Following the Tuesday forex auction, the Reserve Bank of Zimbabwe (RBZ) said US$30,5 million was allotted to bidders of which US$25,9m was channelled to the main auction with US$4,5m going towards the Small to Medium Enterprises (SMEs).

The bulk of the foreign currency continues to be allocated to the procurement of raw materials, machinery and equipment.

The foreign currency auction system has been credited for enhancing the productive sector’s access to foreign currency.-The Chronicle