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Monthly inflation rate surges to 6,4%

by Business Reporter
27 Oct 2021 at 22:14hrs | Views
Zimbabwe's month-on-month inflation for October 2021 climbed to 6,4 percent, its highest level since August 2020 when it touched its highest point of 8,4 percent, latest figures from the Zimbabwe National Statistics Agency (Zimstat) show.

This becomes the third consecutive time monthly inflation has been on an upward trajectory. In August 2021, inflation was recorded at 4,2 percent before increasing to 4,7 percent in September 2021.

The year on year inflation rate (annual percentage change) for the month of October 2021 as measured by the all items Consumer Price Index (CPI) stood at 54,49 percent up from 51,5 percent in September. Again this is the second consecutive time annual inflation rate has trended upwards.

Annual inflation is likely to end the year between 35 percent to 46 percent, up from the revised year end targets of between 25 percent and 35 percent, Finance and Economic Development Minister Mthuli Ncube said in a presentation at the 2021 pre-budget seminar recently held in Victoria Falls.

Minister Ncube pointed out that the economy was witnessing inflationary pressures emanating from benchmarking or indexation of prices of goods and services at parallel market exchange rates.

"In addition, the increase in international food and oil prices as well as global inflation continue to exert additional inflation pressures in the domestic economy," he said.

The month on month food and non-alcoholic beverages inflation rate stood at 7,56 percent in October 2021, gaining 2.74 percentage points on the September 2021 rate of 4,82 percent. The month on month non-food inflation rate came in at 5,56 percent, gaining 0,89 percentage points on the September 2021 rate of 4,67 percent.

The data on prices was collected during the period from 13 to 19 October 2021 and the changes in prices in this report refer to that period of data collection. The Food Poverty Line (FPL) for one person in October 2021 was $5 092,25 representing an increase of 7,6 percent over the September 2021 figure of $4 734,33.

The Total Consumption Poverty Line for one person stood at $7 118,32 in October 2021 representing an increase of 7,0 percent when compared to the September 2021 figure of $6 653,65.

Source - Herald