Oliver Kazunga, Senior Business Reporter
ZIMBABWE’s month-on-month inflation rate increased by 7,02 percentage points last month to 12,54 percent from 5,52 percent in April, official data shows.
In its latest report, the Zimbabwe National Statistics Agency (Zimstat) said this means that as measured by the all items Consumer Price Index (CPI), prices increased by an average rate of 12,54 percent from April 2019 to May 2019.
“This means that prices as measured by the all items CPI increased by an average rate of 12,54 percent from April 2019 to May 2019,” it said.
Zimstat said the month-on-month food and non-alcoholic beverages inflation rate stood at 17,63 percent in May 2019, gaining 9,78 percentage points on the April 2019 rate of 7,85 percent.
The month on month non-food inflation rate stood at 10,12 percent, gaining 5,67 percentage points on the April 2019 rate of 4,45 percent.
The agency also indicated that Zimbabwe’s year-on-year inflation rate last month as measured by the all items CPI stood at 97,85 percent, while that of April 2019 was 75,86 percent.
“This means that prices as measured by the all items CPI increased by an average of 97,85 percent between May 2018 and May 2019,” it said.
The rise in inflation has largely been attributed to the disparities in exchange rate between the US$ and the RTGS$ where businesses are charging premium prices due to perceived uncertainty.
It has been noted that the uncertainty was stemming from the market, which believes in the US dollar as the only currency that will protect their assets and be able to conduct meaningful transactions.
Last week, Finance and Economic Development Minister Professor Mthuli Ncube said prices of goods are expected to start dropping from next month on the back of the Government’s fiscal consolidation measures and others initiatives introduced into Zimbabwe’s economic programmes.
Prof Ncube made the remarks in a pre-recorded Governors’ Statement released during the 54th meeting of the boards of governors of the African Development Bank and the 45th annual meeting of the African Development Fund held at the Sipopo Conference Centre.
The Government is implementing economic reforms as set out in the Transitional Stabilisation Programme (October 2018 to 2020).