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Wednesday, June 7, 2023

Policy interventions on track as annual inflation falls

Story by Stanley James, Business Editor

Government’s policy interventions through fiscal and monetary authorities continue to yield positive results as the December year-on-year inflation has dropped.                     

Data virtually released by the Zimbabwe National Statistics Agency (ZIMSTAT) this Wednesday reveals that annual inflation dropped for the third consecutive time to 243,8 per cent in December this year.

Mr Taguma Mahonde, Zimbabwe National Statistics Agency Director General announced, “The month-on-month inflation rate in December 2022 was 2,4 per cent, gaining 0,6 percentage points on the November 2022 rate of 1,8 per cent. The year-on-year inflation rate for the month of December 2022 as measured by the all items Consumer Price Index stood at 243,8 per cent compared to 255,0 per cent in November 2022.”

Employers Confederation of Zimbabwe’s immediate past president, Dr Israel Murefu says the drop in annual inflation reflects the positive impact of government and RBZ policy interventions.

“A  tight monetary policy stance, hiking of interest rates and a value for money process system have all led to a persistent drop in inflation levels,” he noted.

Chartered Marketers Association of Zimbabwe President Mr Shame Hokonya believes sustained inflation policies are crucial for economic development.

“It is all about measures to tame inflation on a long terms basis that will even create the impetus for growth,” said Mr Shame Hokonya, Chartered Marketers Association of Zimbabwe President.

Inflation is usually measured on a monthly or yearly basis and reflects the rate at which prices go up or fall over a given period of time.

Market watchers contend that a fall in the inflation rate however does not necessarily mean falling prices, but the reduced pace at which prices are rising.

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