Statistics from the ZIMSTAT show that Zimbabwe is still battling annual inflation, but it has however slowed down this December, from 255% in November to 243,8%. It is still the highest inflation rate in the world which is causing regional of the country's economic problems.
According to an article published by The Standard on the 23rd of December 2022, the Confederation of Zimbabwe Industries says immense amounts of work still must be redone to decrease the annual inflation levels.
A report issued by the Zimbabwe National Statistics Agency (ZIMSTAT) on the month-on-month inflation for December was higher by 2.4 than November’s 1.8%.
Recent statistics show that a single individual in Zimbabwe now needs a minimum of ZW$22 193 unless to able to afford basic needs per month. The statistics report shows the total Consumption Poverty Line for a person stood at $29 219 in December 2022.
The month-on-month inflation for 2022, reached its peak in June, sitting at 30.7%. Aljazeera reports that the rise in inflation might spill over to 2023 as it is currently still high.
The herald, however, reports that the Reserve Bank of Zimbabwe governor, Dr. John Magudya says that inflation should be slowing down in 2023 and the RBZ will liberalize the foreign exchange market in favor of economic stability.
Aljazeera reports that the International Monetary Fund (IMF)has predicted a further fall in the country's GPD as the inflation, altogether with a shortage of electricity and the Ukrainian war weighing down Zimbabwe’s economic Growth.
According to Newsday, Economists acknowledge that inflation had slowed down, but they say prices are still elevating especially, basics like fuel, bread, and other necessities. They are still rising, making it even more difficult for the already suffering people to survive in Zimbabwe. Recently, a fuel price hike arose on the 29th of December, and according to Newsday, the Zimbabwe Energy Regulatory Authority’s Chief Executive sited that the increase was due to international developments.
Zimbabwean authorities have often blamed the western imposed sanctions for the hyperinflation. However, according to an article published by Voice of Africa in October 2022, poor governance and corruption in Zimbabwe atone for all the economic decline happening in the country.
Analysts say that inflation figures do not fully reflect the extent of price developments in an economy that is now highly informal. They believe that the increase in month-on-month inflation may have been due to Christmas spending and the bonuses paid by various companies to their employees as a result of increased aggregate demand.
Zimbabwe has experienced inflation before the Zimbabwean dollar was rapidly rising from 1998 to 2009 creating a loss in its value. Lately, inflation has been spiking again and the country is still experiencing other issues like load shedding and fuel prices going up.
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