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Monday, July 15, 2024

Inflation continues to drop

Story by Stanley James, Business Editor

ZIMBABWE’S annual inflation has dropped to 77,2 percent this month from over 100 percent in July this year as fiscal and monetary interventions to stabilise the economy bear fruit.

Since May this year, fiscal and monetary authorities have instituted measures to stabilise the economy.

The measures which include a tight addtitional money supply controls and promoting the use of the local currency have resulted in exchange rate and price stability in the country.

As for this month, prices continued with a positive response to macro-economic stabilisation measures with the Zimbabwe National Statistics Agency (ZIMSTAT) data released this Monday showing that annual inflation slowed down to just above 77 percent this month from 101 percent in July.

In line with the central bank’s prediction, month on month Inflation was at minus 6,3 percent this month from a July rate of minus 15, 3 percent.

Monetary authorities are also expecting inflation to continue declining in the second half of the year as monetary authorities stay the course of stability.

The government is pinning a continuous drop in inflation to also anchor the 5,3 percent growth forecast for this year.

In its latest Economic Outlook Report for the region, the African Development Bank (AfDB) says Zimbabwe will record the biggest fall in inflation in Southern Africa driven by the tight monetary policy stance and falling global prices.

ZIMSTAT states that inflation means the pace at which prices rise over a given period of time and as such, a fall in the rate does not necessarily reflect falling prices.

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