Zim’s September inflation in significant decline

Harare, (New Ziana) – Zimbabwe’s annual inflation declined by 101 percentage points in September 2020 to close the month at 659.40 percent, latest data released on Wednesday shows, pointing to success in government efforts to burst the bubble.

At the same time, month-on-month inflation was down to 3.83 percent from 8.44 percent in August.

Inflation peaked at 785 percent in May but has gradually slowed down since the government introduced the foreign currency auction system at the end of June.

The move had a massive impact on improving access to foreign currency by companies, with the benefits cascading to pricing of goods and services.

Authorities insist that speculative pricing, before introduction of the foreign currency system, was the main driver of inflation, which they expect to close the year at around 300 percent.

“The year-on-year inflation rate (annual percentage change) for the month of September 2020 as measured by the all items Consumer Price Index (CPI) stood at 659.40 percent,” said the Zimbabwe National Statistics Agency (Zimstat).

This means that prices as measured by the all items CPI increased by an average of 659.40 percent between September 2019 and September 2020.”

The slow-down in inflation has been felt by consumers who have witnessed a stability in prices of goods and services in the past few months compared to months before when prices were
unpredictable.

Introduction of the foreign currency auction system has seen companies accessing the United States dollar at rates around $81 compared to over $100 on the parallel market.
New Ziana