Zimbabwe inflation on the rise, stats show
ZIMBABWE’S inflation was on the rise, the country’s statistics agency, Zimstats said yesterday, with the new data for September reflecting economic upheavals in the country and companies also starting to pass the burden of foreign currency shortages to consumers.
Foreign currency and cash shortages at Zimbabwe’s banks have driven down earnings by some companies, owing to constrained consumer spending power.
Companies have also had to resort to parallel markets for foreign currency to pay for key imports as the central bank delays processing international transactions. But others are resisting this urge, although executives have raised the alarm that continued inflation increases will slow down sales.
“There have not been any significant changes in our operations in the past three months, albeit with some challenges in the context of the macro-economic developments in the country,” said Tsungai Manyeza, a spokesperson for brewer and soft drinks maker, Delta Corporation, in Zim- babwe.
Delta reported a 2 percent revenue surge for the half year to end September and has not instituted price increases for its products.
Delta noted “transaction challenges” in rural areas for slowing down sales for the Chibuku category.
Zimbabwe was hit by a wave of price increases and shortages of basic foodstuffs last month. Analysts say this all contributed to a surge in the inflation rate for September. Supplies appear to be stabilising now, but some prices for commodities such as cooking oil have not come down.
Zimstats said: “The yearon-year inflation rate for the month of September 2017 as measured by the all items Consumer Price Index (CPI) stood at 0.78 percent, gaining 0.64 percent” on the August 2017 inflation rate of 0.14 percent.
“This means that prices as measured by the all items CPI increased by an average of 0.78 percentage points between September 2016 and September 2017. The month-on-month inflation rate in September 2017 was 0.38 percent gaining 0.51 percentage point on the August 2017 rate of -0.13 percent,” Zimstats said.
Zimstats added that the month-on-month food and non-alcoholic beverages inflation rate stood at 0.66 percent in September 2017, having gained 1.13 percentage points on the August 2017 rate of -0.47 percent.
The month-on-month nonfood inflation rate on the other hand stood at 0.25 percent after gaining 0.22 percentage points.
“Inflation will be of concern going forward,” said Truworths Zimbabwe chief executive, Bekhithemba Ndlovu in a recent presentation.