By Alois Vinga
THE annual inflation rate has reduced to 106,3 % on the back of a raft of measures employed by monetary authorities to ease runaway inflation, Zimbabwe National Statistics Agency (ZIMSTAT) revealed Friday.
The latest data shows a significant climb-down from a high of 257% recorded last month following months of instability which was prompted by both domestic and external shocks. Market watchers accused the government of excess money supply into the economy as chief among the causes.
In response to the economic shock waves, authorities swiftly moved to enact a raft of measures which included hiking interest rates on loans, accelerating the mopping up of excess liquidity in the economy and introduction of gold coins as an alternative investment option among other measures.
To date, the Reserve Bank of Zimbabwe (RBZ) has revealed that over 80% of the gold coins sales are in local currency, a development which market watchers have hailed as a strategy which will go a long way to cleanse the market of bad money.
“The month on month inflation rate in August 2022 was 6, 6% shedding 9, 5% on the July 2022 rate of 16,1%. This means that prices as measured by the all items blended Consumer Price Index (CPI) increased by an average of 6, 6% from July 2022 to August 2022,” said ZIMSTAT.
During the month, the Food Poverty Line (FPL) for one person in August 2022 was $20,461.
The Total Consumption Poverty Line (TCPL) for one person, a measure which sums up the combined cost of living for one person stood at $26,623.00 in August 2022.
The developments come at a time when authorities have targeted to tame annual inflation to between three to 10 % by year end.
“ZIMSTAT produces the official Poverty Datum Lines which are not comparable to cost of living indicators produced by other players in the market,” the agency said.