Producer Price Index jump 10 percentage points in March

WHOLESALE prices continued on an upward trajectory in March reflecting consumer price increases being experienced in the country.

The year-on-year Producer Price Index (PPI) rate of change stood at 61,52 percent in March 2022. In February it stood at 51,49 percent.

On the other hand, the month-onmonth rate of change in March 2022 was 6.92 percent gaining 4.1 percentage points on the February 2022 rate of 2.82 percent.

According to Zimstat, the group of products that have contributed most to

the rise in the March 2022 index were manufacture of other food products, distilling, rectifying and blending of spirits, mining of non-ferrous metal ores,

manufacture of tobacco products, basic iron and steel, dairy products, products of wood, cork, straw and plaiting metals, grain mill products, starches and

starch products, glass and glass products, batteries and accumulators, non-metallic mineral products n.e.c, prepared animal feeds, other fabricated metal product, metal working service activities, processing and

preserving of fruits and vegetables, manufacture of vegetables and animal oils and fats, processing and preserving of fish, crustaceans and molluscs,

processing and preserving of meat, sawmilling and planning of wood, quarrying of stone, sand and clay, manufacture of jewellery, bijouterie and related

articles, furniture and basic precious and other nonferrous materials.

“Manufacture of parts and accessories of motor vehicles, mining of hard coal, spinning, weaving and finishing of textiles, manufacture of wearing apparel,

except fur apparel, tanning and dressing of leather, manufacture of luggage, handbag, saddlery and harness, dressing and dying of fur, manufacture of

footwear, basic chemicals, fertilisers, and nitrogen compounds, chemical products, pharmaceuticals, medical chemical and botanical products, rubber

products and manufacture of plastics did not contribute to the increase or decrease of the index,” Zimstat said in a report released today.

The PPI is widely considered as the business version of the consumer price index, or CPI. The index measures the change in prices for goods as they leave the factory.

The PPI acceleration further substantiates some economists’ forecasts that inflation may continue to run, especially when coupled with April’s CPI figures which saw inflation move closer to triple digits at 96,4 percent.

However, post the release of the April inflation figures, government has since taken measures to tame the runaway inflation. Some of the measures include the now lifted suspension of bank lending.

In a statement released on Tuesday, the RBZ said, “the temporary suspension of lending services by banks has been lifted with immediate effect.”

However, the lift on the temporary ban has not been extended to entities believed to have been borrowing to speculate on the currency.

The RBZ said it’s Financial Intelligence Unit (FIU) is looking into companies that have been misusing loan facilities given to them by banks.

“The lifting of the suspension does not apply to those entities that are under investigation by the FIU for abusing loan facilities to the detriment of the economy. The FIU has accordingly advised all banks of the affected entities,” reads the statement in part.