Zim to report three sets of inflation numbers

The Zimbabwe National Statistics Agency (ZimStat) has begun reporting three sets of inflation figures following the introduction of the new currency, Zimbabwe Gold (ZiG), which was introduced by the Reserve Bank of Zimbabwe earlier this month.

Starting this month, inflation figures will be reported in the weighted format, thereafter in US dollar and ZiG figures separately.

Zimbabwe introduced ZiG on April 5, 2024, as part of measures announced in the monetary policy statement to address several issues facing the economy, chief among them exchange rate volatility and rapid inflation increases.

The southern African nation had reintroduced its domestic currency in 2019 after a 10-year pause occasioned by hyperinflation. Between February 2009 and February 2019, the country used a basket of currencies dominated by the greenback.

“Going forward from the April price statistics, the country will publish three price indices with the ZiG index, US dollars Index and the Blended Index. This month we do not have a ZiG price index because it has been rebased according to international practice,” the agency reported.

ZimStat revealed the new inflation reporting format during a press conference for the presentation of the April 2024 month-on-month and year-on-year inflation figures.

The US dollar Consumer Price Index (CPI) was 106,76 in April and 105,96 in March 2024.

Zimbabwe’s US dollar month-on-month inflation rate was 0,8 percent in April 2024, gaining 0,6 percentage points on the March 2024 rate of 0,2 percent.

“This means that prices as measured by the all-items USD CPI, increased by an average of 0,8 percent between March 2024 and April 2024,” Zimstats said.

In the sector month-on-month food and non-alcoholic beverages inflation rate was -0,3 percent in April 2024, shedding 0,4 percentage points on the March 2024 rate of 0,1 percent, whilst the April 2024 month-on-month non-food inflation rate was 1,2 percent, gaining 1,0 percentage points on the March 2024 rate of 0,2 percent.

The US dollar year-on-year inflation rate for April 2024 as measured by the all-items Consumer Price Index (CPI), was 3,2 percent.

“This means that prices as measured by the all-items CPI, increased by an average of 3,2 percent between April 2023 and April 2024 giving us a mean month-on-month inflation rate for the period January to April 2024 of 0,1 percent,” the agency stated.

According to the latest data, the weighted month-on-month inflation rate was 2,9 percent in April 2024, shedding 2,0 percentage points on the March 2024 rate of 4,9 percent.

This means that prices as measured by the all-items CPI, increased by an average of 2,9 percent between March 2024 and April 2024.

“The month-on-month Food and Non-Alcoholic Beverages inflation rate was 4,2 percent in April 2024, shedding 3,9 percentage points on the March 2024 rate of 8,1 percent. The April 2024 month-on-month non-food inflation rate was 2,4 percent, shedding 0,6 percentage points on the March 2024 rate of 3,0 percent,” ZimStat said.

The year-on-year inflation rate for April 2024 as measured by the all-items CPI, was 57,5 percent, meaning that prices as measured by the all-items CPI, increased by an average of 57,5 percent between April 2023 and April 2024.

As a result, the weighted inflation mean month-on-month inflation rate for the period January to April 2024 was 4,9 percent.

With the new currency less than a month old, ZimStat could not compute the ZiG-based inflation figures.

“The ZiG CPI in April 2024 was 100,00. In April 2024, Zimbabwe introduced the Zimbabwe Gold (ZiG) currency. Therefore, the index reference for the CPI for the ZiG currency is April 2024. This means during the month of April 2024, there is no month-on-month and year-on-year inflation rates.

“The month-on-month inflation rate for the ZiG currency will be computed starting in May 2024 and going forward and year-on-year inflation rate will be computed in April 2025 and going forward according to the international recommended methods,” said Zimstats.-herald