ZiG Monthly Inflation Falls in June, Annual Rate Still High
Zimbabwe’s local currency, the Zimbabwe Gold (ZiG), saw a drop in its monthly inflation rate in June, offering some relief to consumers amid the country’s efforts to stabilise prices.
According to the Zimbabwe National Statistics Agency (ZimStat), monthly inflation fell from 0.9% in May to 0.3% in June, showing signs that tight government controls are keeping short-term price increases in check.
ZiG Monthly Inflation Falls in June, Annual Rate Still High
While monthly figures are down, the annual inflation rate rose to 95%, up from 85.7% in April, the first time an annual rate was reported under the ZiG currency.
This rise reflects earlier price hikes caused by last year’s sharp devaluation of the old currency, a move meant to fix exchange rate imbalances. But economists say the annual rate should eventually come down if monthly inflation remains low, since the yearly figure is just a 12-month average.
Officials believe the continued fall in monthly inflation shows that their fiscal and monetary policies are working. Both the Treasury and the Reserve Bank of Zimbabwe have maintained a tough stance on spending and money supply, helping to keep inflation within target ranges for now.
Also read: Zimbabwe’s ZiG Inflation Hits 92.1% As USD Rates Drop
What’s Driving Prices?
Breaking down the numbers, ZimStat said the main drivers of inflation in June were costs related to housing, water, electricity, gas, transport, and communication, which together pushed up prices by 0.3% in local currency terms.
When looking at prices in US dollars, things remained largely stable. ZimStat said the US dollar month-on-month inflation rate was 0.2% in June, slightly up from May’s figure of -0.3%. This means that prices in USD rose a little, mostly due to food and beverage costs.
When both currencies are considered together, Zimbabwe’s Weighted Consumer Price Index showed a combined inflation rate of -0.1% in June, a small dip from May’s flat rate of 0.0%.
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The post ZiG Monthly Inflation Falls in June, Annual Rate Still High appeared first on iHarare News.
