Annual inflation drops to 50,24pc
THE Zimbabwe National Statistics Agency (Zimstat) has reported a further drop in the country’s annual inflation to 50,24 percent for the month of August from 56,37 percent last month.
The country’s rate of annual inflation has recently been falling with fiscal and monetary authorities targeting an inflation rate below 25 percent by year-end.
In a latest update, the statistics agency said: “The year-on-year inflation rate (annual percentage change) for the month of August 2021 as measured by the all-items Consumer Price Index (CPI) stood at 50,24 percent.
“This means that prices as measured by the all-items CPI increased by an average of 50,24 percent between August 2020 and August 2021”.
Zimstat also indicated that month-on-month 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,” it said.
The month-on-month food and non-alcoholic beverages inflation rate stood at 3,14 percent in August 2021, gaining 0,63 percentage points on the July 2021 rate of 2,51 percent. The month-on-month non-food inflation rate stood at 4,95 percent, gaining 2,35 percentage points on the July 2021 rate of 2,60 percent.
Market analysts have commended the Government for sustaining disinflation policies over the past year that has seen headline inflation decelerating from a peak of 834,01 percent in July last year to 56,37 percent last month.
This is the first time that headline inflation is in double digit levels since June 2019 when the annual inflation rate surged to 175,8 percent.
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The Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee has indicated its commitment to continue with the conservative monetary policy stance to ensure the prevailing price stability is maintained.
With inflation slowing down as intended, the obtaining macro-economic stability, which is expected to continue to be reinforced by the positive outlook on inflation and the balance of payments position, requires RBZ to stay the course and maintain its current monetary policy position, which has had positive impact on the economy.
In the Mid-Term Monetary Policy Statement, RBZ Governor Dr John Mangudya aintained the bank’s overnight accommodation of 40 percent and the medium-term lending rate for productive sector of 30 percent.
The monetary authorities are hopeful that this would be maintained in the short term, in rder to control money supply and curb speculative activities.
The Reserve Bank has also pledged to continue to review the policy rates in response to the downward inflation trajectory. — chronicle.co.zw
