Harare, (New Ziana) – Zimbabwe’s annual inflation eased 32.16 percentage points in May to close the month at 161.91 percent, the Zimbabwe National Statistics Agency (ZimStat) said on Wednesday.
Inflation was 194.07 percent in April.
Month-on-month inflation was 2.54 percent, up from 1.58 percent the previous month.
The slide in annual inflation, however, comes against a rise in the poverty datum line (PDL) during the same month to $5 771 from $4 139 previous month, Zimstat said.
The increase in the PDL, which represents the amount of money an individual needs to spend on basic necessities not to be deemed poor, follows a depreciation of the local currency against the greenback.
Zimstat last month explained that the drop in inflation against a rise in the PDL was termed inflation deceleration following confusion in the market among some stakeholders.
Consumer groups have urged government to continuously look at the cost push factors making goods and services more expensive than the majority can afford.
Zimbabwe’s inflation peaked at 875.55 percent in May last year and has continuously dropped following the introduction of a foreign exchange auction system in June 2020.
Government is optimistic annual inflation will drop to below 20 percent by year end.