By Alois Vinga
ANNUAL inflation for the period of March 2023 declined to 87,6% down from 92,3% recorded last month , Zimbabwe National Statistics Agency (ZIMSTAT) reported Friday.
The figure is in line with the new realistic inflation calculation method under S.I. 27 of 2023 introduced by treasury which tracks price movement as determined by the dual currency nature of the economy.
Prior to this, inflation calculation was only tied to the ZWL local currency while ignoring the dual nature of the economy which also uses the US$ to transact.
“The year-on-year inflation rate for the month of March 2023 as measured by the all items Consumer Price Index (CPI) was 87,6%. This means that prices as measured by the all items CPI increased by an average of 87,6% March 2022 and March 2023.
Basing on the same method, the month-on-month inflation rate in March 2023 was 0,1% gaining 1,7% on the February 2023 rate of minus 1,6% implying that prices as measured by the all items CPI increased by an average of 0,1% from February 2023 to March 2023.
Apart from the new calculation method, inflation rates has sustained a decline trajectory since July 2022 on the back of a raft of policy measures implemented lately aimed at easing inflation pressures which include introduction of gold coins, mopping up of excess liquidity, targeted interest rates to contain speculative borrowing among other measures.
During the period, the Food Poverty Line (FPL) for one person in March 2023 was $22,561 representing the amount of money that an individual will require to afford the minimum required daily energy intake of 2 100 calories.
“The Total Consumption Poverty Line (TCPL) for Zimbabwe stood at $29,778.08 per person in March 2023. This means that an individual required that much to purchase both non-food and food items as at March 2023 in order not to be deemed poor.
“This represents an increase of 0.7 percent when compared to the February 2023 figure of $29,562.94,” said Zimstat.
This means that a family of six now requires ZWL177 372 to meet their monthly needs.