Zimbabwe inflation rate drops to 3.5%

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Zimbabwe monthly inflation rate has drastically dropped to 3.5 percent in September, shedding 8.9 percentage points on the August rate of 12.4 percent as price stability persists across the market in response to government measures.

It was gathered that annual inflation has similarly eased to 280.4 percent during the same period compared to 285.0 percent last year.

Meanwhile, economic observers have applauded the recent stability in prices of basic goods and services, which have seen some commodities such as fuel and cooking oil continuing to fall following adoption of corrective measures by the Government and the Reserve Bank of Zimbabwe (RBZ).

In view of the drop in the fuel price, which is a major cost driver, more businesses have been urged to reduce prices.
The comprehensive fiscal and monetary measures have hit the black-market exchange rate in a big way by drying up excess liquidity and market indiscipline which drove wild inflationary pressures.

According to the Zimbabwe National Statistics Agency (ZimSat)’s latest update, the country is making inroads in stemming the recent inflation spiral, with the prevailing stability expected to restore consumer spending power.

“The month-on-month inflation rate in September 2022 was 3.5 percent shedding 8.9 percentage points on the August 2022 rate of 12.4 percent,” the agency revealed.

“This means that prices as measured by the all-items CPI increased by an average rate of 3,5 percent from August 2022 to September 2022.”

ZimStat also said the month-on-month food and non-alcoholic beverages inflation rate stood at 1.7 percent in September 2022, shedding 12.5 percentage points on the August 2022 rate of 14.2 percent.

The exchange rate on the black market has now been stable at around US$750 to $800 per US-dollar and even edging down, closing the gap with the official rate at around $613.4 per dollar.