Zimbabwe Experienced A Sharp Increase In Food Inflation In December
Zimbabwe experienced a sharp increase in food inflation in December, with prices of basic commodities soaring before the festive season. The cost of living has become increasingly challenging for Zimbabweans, NewsDay reported citing a report by the Zimbabwe National Statistics Agency (ZimStat).
ZimStat’s latest report reveals that the month-on-month inflation rate for December rose to 4.7%, a 0.2 percentage point increase from November’s rate of 4.5%. The year-on-year inflation rate also climbed to 26.5% in December, up from 21.6% the previous month.
The report states that the minimum needs basket cost ZWL$106,696.52 (about US$18 per official exchange rate) per person in December, a substantial 21.6% increase compared to November’s figure of ZWL$87,756.38. This represents a significant burden for the average Zimbabwean trying to afford basic necessities.
The Total Consumption Poverty Line, which includes essential items beyond food, also witnessed a significant jump, reaching ZWL$140,252.59 (US$23) in December, compared to ZWL$115,090 in November.
ZimStat highlighted that non-alcoholic beverages had the highest contribution to the month-on-month change index, with a 2.7% increase, followed by housing, water, electricity, gas, and other fuels, which contributed 1.6% to the inflation rate.
The volatility of food prices has been a major concern, with staples such as bread, cooking oil, and sugar becoming increasingly expensive. The depreciation of the local currency against foreign currencies has further exacerbated the situation, making it even more difficult for Zimbabweans to afford basic necessities.
As Zimbabwe enters 2024, there are concerns that the economic challenges could intensify, posing a greater burden on the population. The government and relevant authorities need to address the root causes of inflation and take measures to stabilize prices and improve the affordability of essential goods for the people.
