ECONOMISTS have commended the tight monetary policy stance for keeping inflationary pressures under check with the interventions yielding desired stability and price predictability.
According to latest figures from the national statistics agency, ZimStat, the month-on-month inflation rate for February stands at 0,3 percent, shedding 11,3 percentage points from the January rate of 11,6 percent.
This means that prices as measured by the all items weighted consumer price index (CPI), increased by an average of 0,3 percent from January 2025 to February 2025.
The month-on-month inflation rate is given by the percentage change in the price index of the reference month compared with the index of the previous month.
Commenting, economist Mr George Nhepera said the exchange rate has remained stable since October last year when the local currency was devalued by about 45 percent.
“The 0,3 percent month-to-month inflation reported for February 2025 by ZimStat could be a good economic sign to the monetary authorities that their tight liquidity policies are beginning to bear fruit on the economy,” said Mr Nhepera.
“This explains why the exchange rate has remained relatively stable over the past six months since its sudden devaluation in October last year by more than 45 percent.
“We are a nation, which for a long time has been associated with high levels of inflation, affecting our business and individual confidence.
“To now begin to report such low levels of inflation should indeed be commendable. This no doubt could begin to set our country on a good economic trajectory.”
The Reserve Bank of Zimbabwe (RBZ) devalued the Zimbabwe Gold (ZWG) by 42,55 percent against the US dollar in October last year, following weeks of rising black-market rates and market pressure.
Prior to the adjustment, the currency traded between ZWG13 and 14 per US dollar.
The devaluation followed RBZ’s efforts to stabilise the currency. In September 2024, the central bank injected US$64 million into the interbank market in a bid to curb further depreciation.
Meanwhile, ZimStat has said the food poverty line (FPL) for one person in February 2025 was ZWG 868,16.
This means that the minimum needs basket cost that much per person in February 2025.
The food poverty line represents the amount of money that an individual requires to afford a daily minimum energy intake of 2 100 calories.
“The total consumption poverty line (TCPL) for one person was ZWG1 263,86 in February 2025,” said ZimStat.
“This means that an individual required that much to purchase both non-food and food items as of February 2025 in order not to be deemed poor.”
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