Zimbabwe’s inflation rate has slowed to 194.07% in April from 240.55% in February, the Zimbabwe National Statistics Agency(Zimstats) has revealed.
The Ministry of Finance and Economic Development (MOFED) still holds it’s estimation of a 7.4% economic growth and the control of inflation to below 10% by end of December 2021. The decline in monthly food inflation therefore moves towards estimated 10% control of inflation.
In May last year, inflation peaked to 876% but it has been on the downward trend since the introduction of the foreign currency auction system in June.
According to the Consumer Prize Index (CPI) by Zimstats, Zimbabwe’s annual inflation in April closes the month at 194.07%.
“The month on month inflation rate in April 2021 was 1.58 percent shedding 0.67 percentage points on the March 2021 rate of 2.25 percent,” reads the current CPI.
In a snap survey by BusinessMail, retailers, wholesalers and consumers attributed the fall of inflation to the decrease in agricultural products such as mealie meal since Zimbabwe experienced a bumper harvest this year.
“A number of agro based products prices has gone down due to the fruits of a good harvest. People are now spending less as they are enjoying the harvests,” Economist Langton Mabhanga said.
In the Monetary Policy, the central bank said increased food production due to a favourable agriculture season will subdue inflationary pressures and this is the case.
The drop to a reduction in the rate of prices of goods and services is also largely due to a stable exchange rate.
“The performance of the Zim dollar versus the major currency(USD) has been stable over the past 3 months, this means that the market is positively responding to the holding of value of the Zim dollar therefore finding it needless to increase prices,” Mabhanga added.
Through the stability of the foreign exchange rate, the central bank has managed to play a role in containing inflation.
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