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Monthly Inflation Slows Down In November

Month on month inflation eased during the month of November for the fifth month running since government introduced a coterie of measures midyear to arrest exchange rate pressures that were fueling price increases.

Authorities then predicted month-on-month inflation to ease and close the year at 3 percent from highs of 31 percent in June.

In its latest monthly update presented today, Zimbabwe National Statistic Agency (Zimstat) said the month-on-month inflation rate in November 2022 was 1.8 percent shedding 1.4 percentage points on the October 2022 rate of 3.2 percent.

Food groups with high inflation in November included meat price which grew by 4.4 percent, fruits 1.2 percent and fish and sea 0.8 percent. Nonfood items with high inflation included communication which was up by 7.5 percent, restaurant and hotels 6.8 percent, education 5.2 percent and clothing and footwear at 2 percent ahead of previous month.

The year-on-year inflation rate for the month of November 2022 as measured by the all items Consumer Price Index stood at 255.0 percent.

The CPI for the month ending November2022 stood at 13,349.42 compared to 13,113.95 in October 2022 and 3,760.86 in November 2021.

Government has since May this year tightened monetary policy by hiking interest rates up to 200 percent from 80 percent in an attempt to curb the scourge of some economic agents who were borrowing from banks for currency speculating purposes. The Reserve Bank of Zimbabwe (RBZ) conceded that the high interest rates are partly the reason why 2022 growth rate projections have been cut down to 4 percent as they dissuaded businesses from borrowing for productivity.

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Furthermore, the reintroduction of gold coins since June has managed to mop up excess liquidity. Recently RBZ said as at 23 September a total of 9516 Mosi-Oa-Tunya gold coins valued at $9 billion had been sold.

In the 2023 National Budget Statement last week, Finance and Economic Development Minister, Prof Mthuli Ncube said monthly inflation is expected to close the year below with the trend projected to continue in 2023.

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