Food prices rise as inflation swells

According to the Zimbabwe National Statistics Agency (ZimStat), a person required at least ZWL701 236,89 for the month of March to buy food.

Since the Zimbabwe dollar (ZWL), was dropped for the ZiG (Zimbabwe Gold) currency on April 5, the March FPL translates to ZiG280,49 per person, showing an increase in the April figure.

ZimStat said the US dollar based monthly inflation rate gained 0,6 percentage point to 0,8% for April, from March. The US dollar based annual inflation rate was recorded at 3,2% for the month, with no March comparison given.

“Food Poverty Line (FPL) for one person in April 2024 was ZiG 424,95,” ZimStat acting director-general Aluwsio Mukavhi said, in the announcement of the April food and inflation statistics yesterday.

“Food Poverty Line represents the amount of money that an individual afford a daily minimum energy intake of 2,100 calories. ZimStat uses the consumer basket for an individual deemed to be poor to calculate the poverty line.”

In terms of the Total Consumption Poverty Line, this was recorded at ZiG650,26 for the month of April.

This was from ZWL$916 225,50, in March, converting to ZiG366,49 showing a big jump in the amount of money needed for one not to be deemed poor.

“The Total Consumption Poverty Line for one person in April 2024 was ZiG650,26. The Total Consumption Poverty Line is derived by adding the non-food consumption expenditures of an individual below the FPL,” Mukavhi said.

“The year-on-year inflation rate for April 2024, as measured by the all-items Consumer Price Index (CPI) increased to 57,5%. The month-on-month inflation rate for April was 2,9%, shedding 2 percentage points on March 2024 rate of 4,9%.”

The annual inflation rate in March was 55,3%.

“For April 2024, the CPI for food and non-alcoholic beverages had the highest contribution to the month-on-month change in index (inflation rate) of 1,3%, followed by housing, water, electricity, gas and others. Fuels with a contribution of 1.0%,” Mukavhi said.

He said that there would be no month-on-month and year-on-year inflation rate using the ZiG this month, as it would be computed next month.

Thus, the local currency component of the inflation and poverty statistics used were ZWL.

“The ZiG Consumer Price Index in April 2024 was 100. In April 2024, Zimbabwe introduced the ZiG currency. Therefore, the index reference for the Consumer Price Index for the ZiG currency is April 2024. This means during April 2024, there are no month-on-month and year-on-year inflation rates,” Mukavhi said.

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