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According to Respect Ronald Gwenzi, a financial analyst and MD of Equity Axis, achieving economic stability in Zimbabwe remains a distant goal despite various measures implemented by the government. Gwenzi noted that it has been 13 sessions since the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance and Investment Promotion intervened to stabilise the formal currency market in June. However, when considering the entire year, there have been 40 formal sessions. A total of US$646 million has been traded on the formal market, averaging around US$16.15 million per session. We present an excerpt from his article first published by the <a href="https://www.theindependent.co.zw/business-digest/article/200017325/stability-a-stretch-away-currency-market-review">Independent</a>:
<blockquote>
Following the interventions by government highlighted above, sessions conducted per week sometimes increased to two from the primary one session a week, for a period of eight weeks before reversion to one session a week.
The implication of this is to give a collated higher weekly average value traded of US$18,1 million on a year-to-date scale. The aggregate value of funds utilised from the formal market against the total foreign outflows will show a significant decline from the prior year.
The divergence is due to increased utilisation of own funds in settlement of external obligations of purchase of imports. The formal market, however, remains very important as a price discovery mechanism and its failure/success in this regard has far reaching impact to the disposition of the broader economy.
</blockquote>
According to industry estimates, the actual demand on the market exceeds the published positions by the Reserve Bank of Zimbabwe (RBZ). The estimated weekly formal market demand is now around US$50 million, more than double the US$20 million offered by the RBZ. It is believed that the displayed amount is merely for psychological purposes to show the government’s financial strength. Settlement timelines have also been delayed indefinitely, indicating that the RBZ is struggling to meet the demand and fulfil its promises. Furthermore, one of the major market participants noted a significant reduction in their weekly allocations since June, indicating that their demand is no longer fully met through the formal market. Gwenzi added:
<blockquote>
All these developments are reflected not through the rate performance on the formal market but the parallel market. The parallel market has a direct relationship with the formal market and normally exposes the weaknesses of the formal market, which weakness the authorities controlling the formal market would be working hard to conceal.
The parallel, because of its independence, exposes these underlying challenges. Unmet demand from the auction and interbank, typically gravitates towards the parallel market and the result is worsening rates and wider variance between the two markets’ rates.
</blockquote>
The Zimbabwe dollar experienced a 4.5% decline on the formal market, continuing the significant losses observed in the previous week. The cumulative losses over the past two weeks are three times worse compared to the losses in the preceding seven weeks. Additionally, the parallel market has shown instability, with the exchange rate surpassing the US$1:ZW$7,000 mark, resulting in a higher premium. These currency market trends reveal that the formal market is not as free from government influence as previously believed. The government’s obsession with controlling the exchange rate for its own interests negatively impacts the economy. Rising local liquidity supply contributes to the increasing demand, and the temporary suspension of settling dues before elections aimed to stabilize the exchange rate. Gwenzi added:
<blockquote>
The challenge which Zimbabwe faces is that of little fiscus breathing space. There is basically not as much funds to satiate all of the expenses government would wish to absorb.
The undertaking of infrastructure projects using short term debt and basic money printing is an old-fashioned way of speeding up inflationary pressure in the short term.
In the absence of long term cheap external funding, government is cornered as to how it can stimulate economic growth and deliver the developmental agenda.
The inward looking “vene” policies, crowds out investment and reduces competitiveness.
History has shown that short term funding, such as Treasury Bills, cannot be effectively relied on to stimulate growth and aid the budget, especially when the currency is not stable and is in less favour with the populace.
On the horizon, we are, therefore, gazing in a worse off storm, which does not appear to have an aversion solution as yet. The prevailing volatility is a new normal, which we have to brace for over the next five years.
In such an environment, diversification tends to cushion businesses and portfolios.
</blockquote>
According to Gwenzi, businesses that generate hard currency and have shorter product cycles tend to perform well. It is crucial for businesses to pay attention to their balance sheet structure to avoid issues like stockouts, working capital difficulties, high-interest rates, loss of value, and overall insolvency. Managing these factors becomes essential for business success and financial stability.
Gwenzi can be contacted at: respect@equityaxis.net
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Financial Analyst Says Economic Stability In Zimbabwe Still A Distant Goal

Zimbabwe National Statistics Agency (ZIMSTAT) on Monday, 21 August said annual inflation fell to 77.2 percent in August from 101.3 percent in July.
ZIMSTAT also said the month-on-month inflation rate in August was -6.2 percent gaining 9.1 percentage points on last month’s rate of -15.3 percent. ZIMSTAT said:
<blockquote>The year-on-year inflation rate for the month of August 2023 as measured by the all items Consumer Price Index was 77.2 percent…
The month-on-month inflation rate in August 2023 was -6.2 percent gaining 9.1 percentage points on the July 2023 rate of -15.3 percent.</blockquote>
ZIMSTAT said the Food Poverty Line for one person in August was $70 461.00. The Total Consumption Poverty Line for one person was $91 063.00 in August 2023.
The Food Poverty Line (FPL) represents the amount of money that an individual requires to afford a daily minimum energy intake of 2 100 calories. Said ZIMSTAT:
<blockquote>The CPI for August 2023 was 450.43 and 479.79 in July 2023.</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Annual Inflation Falls To 77.2% In August

Zimbabwe’s annual inflation slowed to 101.3% in July 2023 from 175.8% in June 2023, the latest data from the Zimbabwe National Statistics Agency (ZIMSTAT) shows.
ZIMSTAT also said the month-on-month inflation for July was 89.8 percentage points lower to close in negative territory, -15.3% from 74.5% recorded in June.
ZIMSTAT measures inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's Monthly Inflation Drops To  Minus 15 Percent - ZIMSTAT

Economists say the Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) is forcing businesses to enforce “price controls” which is in turn fuelling US dollar inflation.
This comes as the Government has been battling exchange rate volatility and a sharp rise in the prices of goods and services in the past months.
In its latest report, the Confederation of Zimbabwe Industries (CZI) said the enforcement of price controls by FIU is inflationary. Reads the report:
<blockquote>
The FIU has been harshly enforcing compliance with the prescribed principle of “formal exchange rate plus a 10% margin”.
The enforcement of price controls through the exchange rate by the FIU is actually also inflationary as it causes an increase in United States dollar prices at a time when the American dollar has a higher weight in the blending.
In short, the United States dollar inflation is a compliance-driven inflation as formal businesses tried to hedge against an unrealistic official exchange rate that they were being forced to use.
</blockquote>
Economist Gift Mugano told <a href="https://businesstimes.co.zw/fiu-hounds-firms/">Business Times</a> that if the FIU enforces price controls, it will destroy businesses. He said:
<blockquote>
The local firms peg their prices at the prevailing parallel market rate causing the Zimbabwe dollar to be on the high side as the businesses forward price to survive.
If the FIU comes to enforce the indexation of the United States dollar companies would struggle.
</blockquote>
However, Finance and Economic Development Deputy Minister Clemence Chiduwa said businesses should comply or perish. He said:
<blockquote>
Those who continue to index their prices using the parallel market rates will put themselves out of business as consumers have choices so the United States dollar inflation is for the short term and what is critical is for business to adjust.
The reality is that stability is going to be sustained, we are not going to let go and stability is not transitory. It’s now time for business to start to be ethical.
They can hold on to their current position and see what is going to happen. It is going to be sustainable. They are allowed to take their position but they will lose out in US$ terms as the local currency appreciates.
</blockquote>
CZI chief economist Cornelius Dube told Business Times that the Zimbabwe dollar pricing is correlated with the movement of the parallel exchange rate hence the prices will follow that pattern.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Price Controls" Driving US Dollar Inflation - Economists

The Zimbabwean government has accused local businesses of driving inflation through unjustified price increases.
Speaking in a recent interview with ZBC News, Finance and Economic Development Secretary George Guvamatanga said Zimbabwe has been experiencing “greedflation”, rather than inflation over the past several months.
He accused the business sector of greediness, which has resulted in rising inflation. Said Guvamatanga:
<blockquote>
What we witnessed over the course of the past two months was not inflation as we know it in economic terms, but rather “greedflation” which is really fuelled by greediness from the corporate sector where their forward-pricing practices resulted in the fast escalation of prices in the shops without any justification.
So Government had to intervene to take the necessary measures to ensure that there is stability in the market.
But of concern too though, is that we still continue to see some sections of the corporate sector, be it the manufacturing sector, as well as the retail sector who are still pricing their goods using prices that are not in line with the current exchange rate.
<div class="wp-video" style="width: 468px;">
<video class="wp-video-shortcode" controls="controls" height="270" id="video-260367-1" preload="metadata" width="468"><source src="https://t792ae.c2.acecdn.net/wp-content/uploads/2023/07/Greedflation.mp4?_=1" type="video/mp4"/><a href="https://news.pindula.co.zw/wp-content/uploads/2023/07/Greedflation.mp4">https://news.pindula.co.zw/wp-content/uploads/2023/07/Greedflation.mp4</a></video></div>
</blockquote>
Zimbabwe’s annual inflation rose to 176% in June from 87% a month earlier after the government partially liberalised the exchange rate.
The Zimbabwe dollar, which has been in free-fall in May and June, has been regaining ground against the US dollar on the official forex auction over the past few weeks.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Is Experiencing "Greedflation", Not Inflation, Says Govt Official

Zimbabwean President Emmerson Mnangagwa has threatened individual business entities over price increases and accused them of sabotaging his administration.
In a speech to ZANU PF supporters, Mnangagwa blamed private businesses for the current wave of price increases that have eroded incomes and further dampened the country’s economic revival hopes. He warned businesses to make corrections within seven days or face being named and shamed.
Mnangagwa blamed the price crisis on what he saw as unscrupulous practices by private businesses, despite reports suggesting it was triggered by recent payments to companies contracted to do government projects. He said:
<blockquote>
There are some businesses that are fighting us, especially soon after we proclaimed dates for elections.
Prices started going up, and our Zimbabwe dollar was under attack, with the rate going up.
This was done by those who wanted the people to turn against government. We sought to find out who these people are.
Last time, I mentioned some of them. I also have a list of others. But I am going to name them next week in Zaka.
Today, I want to warn them by saying that I sent my people to them about two days ago, to tell them that what they are doing is not right.
So, you have seven days to make corrections. On the seventh day, I am going to name and shame those that do not shape up. Those who are hoarding and those who are manipulating.
We strongly warned some of them that we would name and shame them.
They then begged us not to expose them by saying that our Zanu PF people would not buy from them.
They chose to pay some fines and agreed to change their ways. On Tuesday, we will hear more about some of these businesses.
So, those who are hoarding and manipulating the economy, I say to you, this is Zimbabwe and it is for Zimbabweans.
Either you are with us or you are not with us. If you are with us, we will support you and give you the leeway to do business. But if you are not with us, business rako richaunyana (your business will crumble).
</blockquote>
Zimbabwe’s economy has been hit by massive price increases on goods and services, causing a decline in workers’ incomes and putting pressure on the ruling Zanu PF party to address the issue. Unconfirmed reports suggest that the price hikes were triggered by a recent payment by the treasury to companies contracted for government projects. The government pays suppliers and service providers in local currency, which they then sell in the parallel market for hard currency, causing an artificial increase in exchange rates.
President Mnangagwa has blamed private businesses for the problem, refusing to acknowledge any wrongdoing by his administration. His threats are part of his efforts to solve the economic problems in the country and to be re-elected for a second term in the upcoming elections.
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Mnangagwa Has Threatened Businesses Over Price Increases And Sabotage

The Ministry of Finance and Economic Development has released a statement regarding the billing of rates and services in foreign currency. The statement strongly opposes those who reject the use of the Zimbabwean dollar and issue statements indicating such. The ministry reminds all government agencies and local authorities to comply with the government’s directive to collect fees and levies in local currency, as part of the measures being undertaken to promote the use of local currency. The ministry expresses concern about certain local authorities and government agencies that continue to charge services exclusively in United States dollars, which is not only in contravention of the law, but also against government policy.
The statement seen by Pindula News says the Zimbabwean dollar was adopted as the sole legal tender in 2019, and any billing for services in foreign currencies can only be done if provided for by law or if exempted in terms of the Exchange Control Regulations. The ministry also highlights that persons with free funds cannot be compelled to pay in foreign currency and are free to choose to pay for goods and services in Zimbabwean dollars at the ruling rate on the date of payment. Reads the statement:
<blockquote>
<h3>BILLING OF RATES AND SERVICES IN FOREIGN CURRENCY</h3>
1) Under the National Development Strategy 1, Government has made considerable progress in fostering macroeconomic stability by implementing a broad range of fiscal and monetary stabilization measures. 
2) Resultantly, there has been notable stability in the economy, the exchange rate and general prices of goods and services. 
3) Recently, Government introduced additional measures to promote the use of local currency and these include the settlement of tax obligations in local currency among others, as part of the raft measures being undertaken. 
4) On the 29′ of May 2023, Govemment directed that all Govemment Agencies including Local Authorities should collect fees and levies in local currency in order to promote the wider use of domestic currency. 
5) However, Government notes with concem the outright disregard of this directive by certain Local Authorities and Government Agencies who either have gone ahead to issue notices to the contrary or continue charging services exclusively in United States Dollars. The City of Harare is one such case in point. 
6) The behavior is not only in contravention of the law but also militates against Government Policy. Therefore, all Government Agencies and Local Authorities are reminded to comply with the Government directive with immediate effect. 
7) Government remains committed to the broad use of local currency for domestic transactions which started in 2019 when Government adopted the use of the Zimbabwe Dollar. 
8) Several legal instruments have been promulgated by the Govemment to facilitate the re-introduction of the Zimbabwe dollar namely the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Real Time  Gross Settlement Electronic Dollars (RTGS Dollars) Regulations, published in Statutory Instrument 33 of 2019. 
9) Subsequently, Government Published the Reserve Bank of Zimbabwe (Legal Tender) Regulations through SI 142 of 2019 whose provisions were incorporated in the Finance (No,2) Act, 2019 which provides that: 
• With effect from the 24th of June, 2019, the British Pound, United States Dollar, South African Rand, Botswana Pula and any other foreign currency shall no longer be legal tender alongside the Zimbabwean Dollar in any Transaction in Zimbabwe; 
• The Zimbabwean Dollar shall with effect from 24 June, 2019 be the sole legal tender in Zimbabwe for all transactions, to which the Zimbabwe Dollar refers to bond notes and coins and prescribed electronic money, that is, the RTGS Dollar. 
10) This made the ZWL the sole legal tender for all settlements in Zimbabwe and any billing for services in foreign currencies can only be done if provided for by the law or if exempted in terms of the Exchange Control Regulations. 
11) For the avoidance of doubt, transactions that are excluded from the scope of domestic transactions are clearly stated in the Exchange Control (Exclusive use of Zimbabwe Dollar for Domestic Transactions) Regulations, 2019 published in SI 212 of 2019 and these do not include billing of rates by Local Authorities and charging of services by Government Agencies. 
12) Furthermore, SI 85 of 2020 states that persons with free funds cannot be compelled to pay in foreign currency. They reserve the right to choose to pay for goods and services in Zimbabwe Dollars at the ruling rate on the date of payment. Issued in the public interest.
</blockquote>
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Finance Ministry Warns Against Exclusive Foreign Currency Billing

Zimbabwe’s annual inflation jumped to 175.8% in June from 86.5% in May, the Zimbabwe National Statistics Agency (ZIMSTAT) said on Monday, 26 June.
Reflecting the sharp price hikes over the past few weeks, month-on-month inflation went up by a significant 58.8 percentage points in June to 74.5%, from 15.7% in May.
ZIMSTAT measures inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
In March, economist Prosper Chitambara said that using the blended inflation rate is problematic.  He said:
<blockquote>
The issue is a critical one because companies do not account in blended terms but exclusively in USDs or ZWL so it becomes an issue to have the blended rate as the benchmark inflation.
Interest rate calculation for those borrowing or collective bargaining is going to complicate things.
</blockquote>
Chitambara said the publication of both sets of inflation rates (Blended and ZWL) should continue because most employees earn ZWL and would need to use the rate for collective bargaining.
He argued that companies also report in ZWL and will continue to need the ZWL inflation in order to prepare inflation-adjusted figures.
Just over a week ago, Professor of applied economics at the Johns Hopkins University, Steve Hanke, said Zimbabwe’s year-on-year inflation had reached 1 298 percent.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's Annual Inflation Jumps To 175.8% In June - ZIMSTAT

Professor of applied economics at the Johns Hopkins University, Steve Hanke, says Zimbabwe’s year-on-year inflation has reached 1 298 percent as the Government refuses to abandon the Zimbabwe dollar.
The local currency, which was trading at US$1: ZWL$2 577 on 30 May 2023, had moved to US$1: ZWL$5 978 on 13 June at the Reserve Bank of Zimbabwe (RBZ) controlled forex auction.
Posting on Twitter, Hanke said President Emmerson Mnangagwa’s Government is leading Zimbabwe to “ruins” by insisting on the use of the valueless Zimbabwe dollar. <a href="https://twitter.com/steve_hanke/status/1670514970419707904">He wrote</a>:
<blockquote>
#Zimbabwe’s Pres. Mnangagwa is giving a masterclass in economic stupidity and corruption.
With annual inflation at a whopping 1 298%/yr, he continues to try to push Zimbabweans to use the Zim dollar. He is leading Zim to ruins.
</blockquote>
However, Hanke’s measurement of Zimbabwe’s rate of inflation is problematic as he seemingly only considers prices in Zimbabwe dollars, yet around 30% of transactions are conducted in the local currency, with the US dollar now dominant.
The Zimbabwe National Statistics Agency (ZIMSTAT), which measures inflation in the country, considers prices in both ZWL and USD to come up with a blended rate of inflation.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Mnangagwa Leading Zimbabwe To Ruins", Hanke Claims Inflation Is Now 1 298%

The Consumer Council of Zimbabwe (CCZ) says a low-income urban family of six now needs just over $1 million a month to survive, up from $611 275 in April.
CCZ director Rosemary Mpofu said the cost of living rose by 62% between April and May in Zimbabwe dollar terms.
However, during the same period, the prices of goods and services in United States dollars went down by 31.4 %. <a href="https://www.newsday.co.zw/local-news/article/200012536/family-basket-shoots-to-1m">She said:</a>
<blockquote>
The Consumer Council of Zimbabwe low-income urban earner monthly basket for a family of six stands currently at $1 015 962,61.
This is a sharp increase because the basket has shot from the month of April, where it was $611 275.
When we look at the basket as we measure it, we find out that the low-income earner is mainly earning in the Zimbabwean dollar.
But the cost of living has really increased from the April figure to the May figure and it has constituted a percentage increase of 62.2%.
The new analysis that we use in US$ has decreased by 31.4% so prices have increased in Zimbabwe dollar terms and yet in US$ have decreased by 31.4%.
</blockquote>
The astronomical rise in the cost of living follows a sharp fall in the value of the Zimbabwe dollar over the past few weeks.
Last month, the Zimbabwe dollar fell by nearly 60% on the official market.
On Tuesday this week, the local currency fell from US$1: ZWL$2 577 set by the central bank on 30 May 2023 to ZWL$3 673.
The latest statistics by the Zimbabwe National Statistics Agency (ZIMSTAT) indicate that the annual inflation rose by 11.3 percentage points from April to 86.5% in May.
However, Steve Hanke, a professor of Applied Economics at Johns Hopkins University, argues that Zimbabwe’s inflation is at 717%.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Family Basket Jumps To $1 Million Per Month - CCZ

Zimbabwe’s month-on-month inflation rose to 15.7% in May after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April.
This was said by Zimbabwe National Statistics (ZIMSTAT) director-general Taguma Mahonde in Harare on Friday. He said:
<blockquote>
The month-on-month inflation rate in May 2023 was 15.7% gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The month-on-month inflation rate is given by the percentage change in the index of the relevant month compared with the index of the previous month.
The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the year compared with the index of the same month in the previous year.
</blockquote>
In March this year, Minister of Finance and Economic Development Mthuli Ncube announced that inflation will be measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Former Finance Minister Tendai Biti has said the move by the government to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation.
Biti said the government always comes up with “ridiculous” policies in a bid to cover its “embarrassing failures”.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Monthly Inflation Rate Jumped To 15.7% In May - ZIMSTAT

Vendors in Zimbabwe’s major cities and towns have taken over strategic points, including the verandas of large retail shops, to sell a variety of goods, including basic commodities in foreign currency. This chaos has emerged amid rumours that the vendors’ biggest suppliers are large retailers who are chasing the United States dollar, which is available on the parallel market.
Some retailers are reportedly refusing to transact in the local currency due to various excuses, such as malfunctioning point-of-sale machines.
Consumer Council of Zimbabwe (CCZ) executive director Rosemary Mpofu confirmed reports of the failing electronic payment system. She told <a href="https://www.newsday.co.zw/local-news/article/200011947/are-retailers-dumping-goods-on-the-streets">NewsDay</a>:
<blockquote>
CCZ of late has been receiving consumer complaints from the transacting public, among them retailers charging some products exclusively in US$ only, and rejection of the  Zimbabwean dollar, notably mobile transactions either by phone or swipe cards.
At times, consumers are advised that either the mobile network is poor or lack of connectivity, and non-functioning swipe machines in a bid to harness as much forex from consumers. We appeal to retailers practising such unethical practices to desist as such a move impacts on consumer spending, and limits rights to choice as we are using a dual currency system. The Zimbabwe dollar remains legal tender, that should not be rejected until such a time monetary authorities advise so.
</blockquote>
Denford Mutashu, the president of the Confederation of Zimbabwe Retailers, stated that some unscrupulous businesspeople are responsible for the recent price hikes, which are an attempt to sabotage the government before the general elections. Mutashu described the unwarranted price increases as unnecessary and uncalled for. He also noted that some retailers are deliberately withdrawing point-of-sale machines to reject payments in the local currency. Mutashu said:
<blockquote>
Our position is that retailers should continue accepting the local currency as legal tender. The situation right now is very normal as we are approaching elections. We have a situation where business has suddenly rejected the local currency. It’s difficult to understand the sudden overcharging of goods and services where the parallel market rate has shot up to US$1: $4 000 against the official exchange rate of US$1:$1 500.
</blockquote>
Over the weekend, several major shops and bars in Harare’s residential areas refused to allow consumers access to point-of-sale machines. Some large retail shops announced electronic payment system failures for customers transacting in the local currency via radio paging systems.
Zimbabwe has adopted a dual currency system in recent years, allowing for transactions in both the Zimbabwean dollar and the US dollar. However, the growing demand for the US dollar has raised concerns among industry leaders. Denford Mutashu warned that if left unchecked, this demand could lead to a full-time dollarization of the economy. To prevent this outcome, it is essential for all stakeholders to comply with currency laws, promote financial inclusivity, and protect consumer rights.
A Twitter account, purportedly belonging to President Emmerson Mnangagwa’s spokesperson George Charamba, has referred to the recent events as “false chaos.” The account accused manufacturers and large retailers of deliberately sabotaging the government. Read the Twitter posts:
<blockquote>
FALSE CHAOS: Behind this seeming chaos is the methodical BIG HAND OF BIG BUSINESSES!
They use forex cheaply got from the auction to retool, order raw materials, manufacture, and then redirect their output into the informal sector through their AGENTS. The net result is complete dollarisation they falsely claim hurts them; and evasion of taxes for the very government that nourishes them. #ThisMadnessMustBeStoppedNow!
</blockquote>
The Zimbabwean government has attempted to downplay the currency crisis, stating that it has engaged with the industry to control the soaring prices of basic commodities. In his weekly column for a state-owned newspaper, President Mnangagwa accused the business sector of betraying government efforts to stabilise the economy.
The Zimbabwe dollar has been rapidly losing value, and some supermarkets are pricing their goods exclusively in US dollars to avoid losses. Prices in local currency have been fluctuating daily, leading to panic buying by consumers.
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Zimbabwean Vendors Allegedly Sell Goods In Foreign Currency, With Help From Big Retailers

Award-winning journalist and filmmaker Hopewell Chin’ono says the galloping inflation Zimbabwe is currently experiencing has been caused by bad Government policies.
According to Zimbabwe Statistics Agency (ZIMSTAT), the year-on-year inflation rate for the month of April 2023 as measured by the all items Consumer Price Index (CPI) was 75.2%.
However, American economist Steve Hanke recently said Zimbabwe’s annual inflation stands at 666%.
Posting on Twitter, Chin’ono said President Emmerson Mnangagwa should address the economic fundamentals that are not sound for the economy to function. <a href="https://twitter.com/daddyhope/status/1660238844971606021?s=20">He wrote</a>:
<blockquote>
What I know is that the inflation that Zimbabwe is experiencing at the moment has been caused by terrible and misguided Government policies.
We predicted that this would happen as far back as 2019, this is not rocket science but just common sense.
Using Government draconian decrees on economics will have only one outcome, EMPTY shelves like in 2007/2008.
President Mnangagwa and his regime must stop the State corruption, stop the looting of public funds and stop the plunder of the country’s natural resources which is happening on their watch!
He should stop the abuse of the central bank by ZANU PF political elites and their surrogates, something which has been ongoing since he took office.
He needs to allow good economic policies to be implemented, and not interfere with the running of the central bank.
He should hire or employ competent people hired on the basis of their competence, and NOT party affiliation or ethnicity!
This is just good old common sense! Is he able to do that?
He has failed to do so every day of his life as President of Zimbabwe since the 2017 coup.
All I can say is that political or presidential decrees don’t work, fix the economic fundamentals first!
Since it is a Sunday, I would say he needs to read Mathew chapter 6 verse 33.
It says; “But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.”
It means if you do your part to make your relationship with God your highest priority, He will do His part to provide for your every need, and that is something we can count on.
In Economics, it means; Implement the fundamentals of economics and you will get results as the economy responds to the fundamentals.
The purpose of work is to increase wealth, and the wealth of a country can only be increased if the leadership of that country understands the covenant of economic fundamentals, and follow them.
The President can shout all he wants from the top of a hill, but if the economic fundamentals are wrong, the economy will not hear, fear or respond to his shouting.
The Herald can write as many propaganda articles as it wants, but the economy will be headed to oblivion regardless.
The inflation this week is at 666%, and the Black Market rate is now at 4 000.
You can’t use button sticks (batons), the police Law and Order section or captured magistrates and jails to force an economy to do as you wish!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Draconian Decrees On Economics Will Result In Empty Shop Shelves, Chin'ono Warns Govt

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the gold-backed digital token set to be introduced in the coming weeks will act as a store of value and will also be used for transactions.
Speaking in an interview with <a href="https://www.herald.co.zw/rbz-gold-digital-tokens-to-hit-market-next-month/">The Herald</a> on Thursday, Mangudya said the introduction of the gold-backed digital token is expected to suck excess liquidity from the market and stabilise the Zimbabwe dollar which has been in free-fall on the parallel market. Said Mangudya:
<blockquote>
Inflation, which has also declined in US dollar terms, is expected to further decline, so the outlook is very good.
Going forward, inflation will continue to decline due to stabilising local currency, as the RBZ expects to introduce gold-backed digital tokens.
The gold-backed digital token will act as a store of value, and secondly, they can be used for transactions.
By doing so, this will mop up all the excess liquidity in the market, and stabilise the currency.
</blockquote>
The latest statistics from Zimbabwe National Statistics Agency (ZimStat) show that annual inflation declined by 12.4 percentage points to 75.2 percent in April 2023.
However, on a monthly basis, consumer prices increased by 2.4 percent in April, the most in six months, after decreasing by 0.1 percent in the prior month.
Zimbabwe’s annual inflation climbed to a two-year high of 284.94 percent last year while the monthly rate peaked at 30.2.
Since the beginning of 2023, ZIMSTAT has been measuring inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Last month, <a href="https://zero.pindula.co.zw/blended-inflation-rate-is-pure-undiluted-heresy-biti/">former Finance Minister Tendai Biti the government to measure inflation using a weighted average</a> of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation. He said:
<blockquote>
Inflation is the measure of the price movement of a good over a period of time. Any good has one price so the blend rate is pure undiluted heresy and is a disingenuous attempt to muddle the ever-rising rate of inflation.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Digital Currency To Stabilise Zimbabwe Dollar - Mangudya

Vice President <a href="https://wiki.pindula.co.zw/Constantino_Chiwenga">Constantino Chiwenga</a> has urged the nation to be calm in response to the sharp decline of the Zimbabwe dollar compared to the United States dollar (USD).
Speaking at the Zimbabwe International Trade Fair (ZITF) International Business Conference in Bulawayo this Wednesday, Chiwenga said the government will continue to pursue measures to maintain exchange rate stability.
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</ol>
He acknowledged the current exchange rate volatility but assured that it was temporary and exchange rate movements were not catastrophic. He said:
<blockquote>
Bold measures are being implemented by Government to foster price and exchange rate stability in the economy.
These measures include tight monetary and fiscal policy, insistence on value for money for Government procurement and effective monetary and surveillance by the Financial Intelligence Unit (FIU).
The transitory exchange rate volatility in the parallel market witnessed in the economy for March this year is merely a reflection of the store of value demand for foreign currency.
</blockquote>
Vice President Chiwenga stated that Zimbabwe has been experiencing an increase in foreign currency inflows, with a peak of US$11.6 billion in 2022, up from historic averages of around US$5 billion to US$6 billion per year. He added: 
<blockquote>
So, there is no point in rushing as though the world is coming to an end.
Reflecting this positive development, the country has also been recording current account surpluses since 2019, a critical condition for currency stability.
As such, Government is staying the course of the current monetary and fiscal policy measures which have proved effective in restoring and sustaining price and exchange rate stability.
</blockquote>
According to Vice President Chiwenga, the Reserve Bank of Zimbabwe (RBZ) is expanding investment options for individuals and corporations with excess Zimbabwe dollar balances.
He added that the Central Bank is planning to introduce “gold-backed digital products” to complement the Mosi-oa-Tunya gold coins currently available. The former military boss said this initiative will allow for the widespread trading of gold coins, expanding the tradable assets in the economy for storage purposes and reducing the speculative demand for foreign currency.
His remarks come as the <a href="https://zero.pindula.co.zw/prices-of-basic-commodities-have-significantly-increased-survey/">black market exchange rate</a> for the local currency has moved to between $1 800 and $2 100 to the US dollar, compared to the official rate of $1 021.
The decline of the Zimbabwe dollar has resulted in businesses raising the prices of their commodities as they price their products at double the official market.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

VP Chiwenga Calls For Calm Amid Decline Of Zimbabwe Dollar

Professional accountants have engaged the government over the move to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars, the “weighted blended inflation rate”.
Accountants argue the adoption of the weighted blended inflation rate has severe consequences when reporting financials.
Speaking to <a href="https://businesstimes.co.zw/accountants-engage-govt-over-blended-inflation/">Business Times</a>, Institute of Chartered Accountants of Zimbabwe CEO, William Mandisodza, said:
<blockquote>
For now, what I can say is that we are lobbying for some alignment with the policymakers.
Commenting outside those discussions will not create the right environment for ongoing discussions.
</blockquote>
Economist Gift Mugano told the publication that blended inflation was a “rigged methodology”. Said Mugano:
<blockquote>
The major danger here is confidence as the government is not taking responsibility by putting the right measures. It’s like it has run out of ideas.
Government wants to reign in inflation from a rigged methodology and say our inflation is now below 100%.
They are not putting the right measures to deal with inflation and they are now going for rigging and I want to repeat this is pure rigging.
It sends the wrong message in showing that we have failed to deal with inflation.
</blockquote>
He argued that the way the prices are increasing in ZWL$ is different from the way the prices are increasing in US$, therefore, inflation should be calculated using the respective currency either in ZWL$ or US$ but separately. Said Mugano:
<blockquote>
A worker that is paid in ZWL$ is facing a steep price regime whereas the one earning in US$ is enjoying price stability.
It’s not correct to say that the prices in the US have annual inflation of 92%.
That is not correct because prices in hard currency have single-digit inflation.
This is totally misleading and uncalled for.
</blockquote>
In early March 2023, the Minister of Finance and Economic Development Mthuli Ncube promulgated Statutory Instrument 27 of 2023 which read in part, … ‘rate of inflation’ means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.”
Using the blended rate, the Zimbabwe National Statistics Agency (ZIMSTAT) said the year-on-year inflation for March was 87.6% and 92.3% in February.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Accountants Engage Govt Over Weighted Blended Inflation Rate

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said inflation has stabilised as 70% of all transactions are in US dollars, reported <a href="https://www.newsday.co.zw/business/article/200009985/inflation-is-not-on-paper-you-feel-it-rbz-chief">NewsDay</a>.
Addressing delegates at the release of the Confederation of Zimbabwe Industries (CZI) 2022 Manufacturing Sector Survey last Thursday, Mangudya, however, acknowledged that there has been a widening between the official forex rate and the parallel market rate. He said:
<blockquote>
We have seen the parallel forex market widening over the past three weeks and we have an idea of what is causing it.
Our job is to make sure that we rein in that disparity between the official exchange rate and parallel market (one) and, of course, the effects to make sure it doesn’t go into the private system.
But on inflation, we are happy that it has been going down from about 30%, month-on-month in July 2022, to 0.7% in January, month-on-month, -1,6% in February, and 0,1% in March this year.
Inflation, Hon minister (Industry and Commerce Minister Sekai Nzenza) and colleagues is — if you are in hyperinflation you will feel it. You don’t see it on paper. Inflation is felt.
If you don’t feel inflation — never worry about people and statistics and don’t worry about historical issues, worry about month-on-month inflation.
</blockquote>
According to Zimstat, the annual inflation for March was 87.6%, down from 92.3% in February, while the month-on-month inflation was 0.1% last month from -1.6% in the comparative prior period.
The statistics were based on the new blended calculation measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Before the new “blended rate”, inflation was being measured using the local currency only.
A fall in inflation does not mean prices are decreasing. Rather, it reflects the slow pace of price increases.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabweans Not Feeling Inflation - Mangudya

Zimbabwe’s annual inflation rate dropped to 87.6 percent in March from 92.3 percent in February.
According to data released by the Zimbabwe National Statistics Agency (ZIMSTAT) on Monday, there was a marginal increase in the month-on-month inflation rate. ZIMSTAT said:
<blockquote>
The year-on-year inflation rate for the month of March 2023 as measured by the All-Items Consumer Price Index (CPI) was 87.6 percent this means that prices, as measured by the Consumer Price Index, increased by an average of 87.6 percent between March 2022 and March 2023.
</blockquote>
The month-on-month inflation rate in March 2023 was 0.1 percent gaining 1.7 percentage points on the February rate of minus 1.6 percent.
ZIMSTAT said the key drivers were social services and elements such as health and education.
ZIMSTAT is now measuring inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Before the new “blended rate”, inflation was being measured using the local currency only.
A fall in inflation does not mean prices are decreasing. Rather, it reflects the slow pace of price increases.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe's Annual Inflation Rate Falls

Economic commentators and trade unionists have criticised the move by authorities to use blended inflation as the benchmark of inflation reading in the country.
Last month the Zimbabwe National Statistics Agency (ZimStat) said the country will now measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously, the official rate was based only on items in Zimbabwe dollars in spite of the widespread use of US dollars and South African rand.
ZimStat Director General Taguma Mahonde recently told <a href="https://www.businessweekly.co.zw/blended-inflation-inadequate-for-economy-experts/">Business Weekly</a> that the local currency inflation will not be published anymore. He said:
<blockquote>
The S.I. 27 of 2023 which states that, “rate of inflation” means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.
The dissemination of inflation rates with effect from the date of publication of this notice shall adopt this method of measuring inflation.
This implies that only the weighted inflation rates will be published.
For the avoidance of doubt, ZWL inflation figures will not be published as per the provision of the aforementioned SI.
Survey data revealed that 79,32 percent of the transactions occur in USD while 20,68 percent occur in local currency.
The weighted inflation reflects these ratios.
</blockquote>
However, economic commentators say using the blended inflation rate is problematic. Economist Prosper Chitambara said:
<blockquote>
The issue is a critical one because companies do not account in blended terms but exclusively in USDs or ZWL so it becomes an issue to have the blended rate as the benchmark inflation.
Interest rate calculation for those borrowing or collective bargaining is going to complicate things.
</blockquote>
Chitambara said the publication of both sets of inflation rates (Blended and ZWL) should continue because most employees earn ZWL and would need to use the rate for collective bargaining.
He argued that companies also report in ZWL and will continue to need the ZWL inflation in order to prepare inflation-adjusted figures.
Accountant, Kudzanai Mugwamba, said:
<blockquote>
It is tough to be an accountant right now because we are already struggling with which exchange rate is the most relevant one, now we are going to be comparing ZWL inflation-adjusted figures to blended inflation figures which then distorts the reporting.
</blockquote>
Trade unionist Peter Mutasa said:
<blockquote>
Blended inflation does not take into account the reality of most employees as they are predominantly paid exclusively in local currency as employers are refusing to pay in blended form. So this means that workers are going to be shortchanged by being underpaid and carrying the cost of exchange rate losses.
Employers will be at an advantage as they will use a lower and irrelevant inflation figure to calculate wages as there is no publishing of local currency inflation.
We will see workers not being able to feed their families because in reality local currency inflation is real and that is what they earn exclusively.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Blended Inflation Rate Problematic For Economy - Experts

Former Finance Minister Tendai Biti has said the recent move by the government to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation.
Minister of Finance and Economic Development Mthuli Ncube on Friday announced that the country will now measure the “blended” inflation rate.
Biti said the government always comes up with “ridiculous” policies in a bid to cover its “embarrassing failures”. Said Biti:
The Reserve Bank has this incredible but ridiculous capacity of inventing dross and reselling the same.
<blockquote>
Zimbabweans remember the fiction of the 1:1 parity exchange between the Zim $ &amp; the US$.
Operation “gedye gedye” was an embarrassing failure whose sole motive was to cover up billions ..stolen from depositors.
The new fad on the scene is the creature called “ blended inflation “ meant to refer to inflation calculated on a blend of the US$ &amp; the RTGS$.
Inflation is the measure of the price movement of a good over a period of time. Any good has one price so the blend rate is pure undiluted heresy and is a disingenuous attempt to muddle the ever-rising rate of inflation.
Yet another example of incompetence &amp; mendacity of the Central Bank. One trapped in a huge Hypocrisy Trap. Zim inflation remains the highest in the world &amp; no amount of spin can change that.
</blockquote>
Using the blended rate, the Zimbabwe National Statistics Agency (ZIMSTAT) said the year-on-year inflation for February 2023 was 92.3% from 101.5% in January.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Before Friday’s move to measure the blended inflation rate, ZIMSTAT had measured annual inflation at 229.8% in January and 243.8% in December.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Blended Inflation Rate Is "Pure, Undiluted Heresy" - Biti

The Minister of Finance and Economic Development Mthuli Ncube on Friday announced that from now, inflation will be measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
According to Statutory Instrument 27 of 2023, “… ‘rate of inflation’ means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.”
Using the blended rate, the Zimbabwe National Statistics Agency (ZIMSTAT) said the year-on-year inflation for February 2023 was 92.3% from 101.5% in January.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Before today’s move to measure the blended inflation rate, ZIMSTAT had measured annual inflation at 229.8% in January and 243.8% in December.
The government reintroduced the Zimbabwean dollar in 2019 after a decade of dollarisation.
In 2020, the multi-currency system was re-introduced and since then, the United States dollar has progressively become the dominant currency in domestic transactions, with USD usage now over 75% in the economy.
In 2022, the government said the multi-currency system would be maintained for a further five years.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Govt Adopts "Blended" Inflation Rate Based On USD, Zim Dollar

The Minister of Finance and Economic Development Mthuli Ncube said that the government will maintain interest rates at par with inflation to promote the use of the Zimbabwe dollar in local transactions.
Ncube told the <a href="https://www.sundaynews.co.zw/fresh-moves-to-promote-use-of-local-currency/">Sunday News</a> that despite the rise in the use of US dollars in local transactions, nothing has changed in terms of the government’s focus on promoting the Zimbabwe dollar. Said Ncube:
<blockquote>
We are now maintaining interest rates that are at least at par with inflation. Our preference is for positive interest rates, that is what gives currency value. 
Maintaining positive interest rates is one way to maintain the value of the Zimbabwe dollar.
When individuals transact on a day-to-day basis using their mobile platforms, the mobile platform is basically the Zimbabwe dollar, which continues to be used widely. 
Some of the taxes that are collected are paid in Zimbabwe dollars. Then there is demand for those Zimbabwe dollars.
This is a policy that we have in place and it will continue. Nothing has changed in terms of focus on promoting our currency.
</blockquote>
The Zimbabwe National Statistics Agency (ZimStat) recently revealed that percent of local transactions are now in US dollars, with the remainder in local currency.
Furthermore, allocations from the Reserve Bank of Zimbabwe (RBZ) foreign currency auction system have also declined, showing reduced demand for USD.
Ncube said partial dollarisation has helped the country circumvent sanctions which are making it difficult for the country to access affordable loans from international financial institutions (IFIs). He said:
<blockquote>
But because of the sanctions on Zimbabwe, we cannot access credit lines abroad easily.
This then compels us to find ways to ensure that US dollars are available for companies to harness and invest locally.
That is the reason why we are allowing US dollars to circulate. We are circumventing a constraint that we have.
We also subject our domestic currency to the full monetary policy framework.
That is why we have the Monetary Policy Committee, which makes sure that we do not allow money supply, the Zimbabwe dollar, to get out of control.
</blockquote>

Mthuli Says Govt To Maintain Interest Rates At Par With Inflation

The Reserve Bank of Zimbabwe (RBZ) has cut its policy rate to 150 per cent from 200 per cent following a gradual decline in the rate of inflation since late last year.
Monthly inflation fell to 1.1 percent in January 2023 from 2.4 percent in December 2022, while yearly inflation fell to 229.8 percent from 243.8 percent.
In his 2023 Monetary Policy Statement issued on Thursday, 02 February, RBZ Governor John Mangudya said:
<blockquote>
The moderation in interest rates is important and necessitated by the downward trend in month-on-month inflation since the last quarter of 2022. The Bank will continue its tight monetary policy stance.
</blockquote>
Mangudya also increased export retentions to 75 percent across all sectors, including firms listed on the Victoria Falls Stock Exchange (VFEX).
He also announced the upward review of the export of foreign currency cash and gold coins from US$5 000 to US$10 000.
The maximum amount of local currency notes and coins that may be taken out of the country has been capped at an equivalent of US$1 000 at the prevailing interbank exchange rate.

RBZ Cuts Policy Rate To 150 Percent After Inflation Falls

Zimbabwe’s annual inflation slowed to 243,8% in December from 255% in November, the Standard reported citing a report issued by the Zimbabwe National Statistics Agency (ZIMSTAT) on Wednesday.
According to the report, month-on-month inflation for the month was 2.4%, higher than November’s 1.8%.
The statistics also showed an individual in the country now needs ZW$22 193 per month to afford basic needs. The report read:
<blockquote>
Total Consumption Poverty Line for one person stood at $29 219 in December 2022.
</blockquote>
Month-on-month inflation peaked this year at 30.7% in June.
The consumer price index (CPI) for December 2022 stood at 13 672 91 compared to 13 349 42 in November 2022.
Economist <a href="https://www.pindula.co.zw/Prosper_Chitambara">Prosper Chitambara</a> said inflation had slowed down, but prices were still shooting up. He told NewsDay:
<blockquote>
Two hundred and forty-three percent is still the highest inflation rate in the world and it creates a lot of challenges for the economy and consumers. The fact that it has slowed down does not mean that prices are going down. Our pricing is still on the very high side — look at fuel, bread and so on, they are still going up. As long as prices continue to increase, then it even makes it more difficult for the ordinary person to survive.
Secondly, when we look at our inflation figures, some scholars have argued that they don’t reflect the full extent of price developments in an economy that is now highly informal. So our official figures tend to understate the challenges with respect to price increases because they are based on a small formal segment whereas the economy has now been informalised to a greater extent.
</blockquote>
Some analysts believe the increase in month-on-month can be attributed to Christmas spending and the bonuses that were paid by various companies to their employees which increased aggregate demand.
Finance minister Mthuli Ncube has targeted to contain monthly inflation below 3% in 2023.
On trade statistics for November 2022, ZIMSTAT said the total value of exports increased from US$498.5 million in October 2022 to US$671.3 million in November 2022.
Imports increased from US$758.8 million in October to US$797.9 million in November 2022.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Zimbabwe’s Annual Inflation Slows In December 2022 - ZIMSTAT

Zimbabwe’s year-on-year inflation has fallen to 268.8% in October from 280.4% in September, according to the Zimbabwe National Statistics Agency (ZimStat).
The latest figures from ZimStat also reveal that the monthly inflation for October is 3.2%, down from the September rate of 3.5%. ZimStat said:
<blockquote>
The month-on-month inflation rate in October 2022 was 3.2 percent shedding 0.3 percentage points on the September 2022 rate of 3.5 percent.
The year-on-year inflation rate (annual percentage change) for the month of October 2022 as measured by the all items Consumer Price Index (CPI) stood at 268.8 percent.
The CPI for the month ending October 2022 stood at 13,113.95 compared to 12,713.12 in September 2022 and 3,555.90 in October 2021.
</blockquote>
The major groups with high inflation in October 2022 (month on month) are as follows:
<ul>
<li>Communication – 6.8%</li>
<li>Recreation and Culture – 4.4%</li>
<li>Miscellaneous Goods &amp; Services – 4.3%</li>
<li>Housing, Water, Electricity, Gas &amp; Other Fuels – 4.2%</li>
<li>Furnish, Housing, Equipment &amp; Routine Maintenance – 3.8%</li>
<li>Restaurants &amp; Hotels – 3.3%</li>
<li>Food &amp; Non-Alcoholic Beverages – 3.1%</li>
<li>Clothing and Footwear – 2.6%</li>
<li>Education – 2.1%</li>
</ul>
The food groups with high inflation in October 2022 (month on month) are as follows:
<ul>
<li>Vegetables – 6.5%</li>
<li>Fruits – 3.9%</li>
<li>Meat – 3.1%</li>
<li>Food – 3.1%</li>
<li>Fish and seafood – 2.0%</li>
</ul>

Zimbabwe's Annual Inflation Slows Down

Finance and Economic Development Minister Mthuli Ncube has predicted that inflation will drop to less than 100% next year following measures that have been put in place by the government to stabilise the economy.
The country’s annual consumer price inflation climbed further to 285% in August of 2022, from 256.9% in the prior month.
Addressing journalists on Monday in Harare, Ncube also said Zimbabwe’s gross domestic product (GDP) will grow by 5.5%. He said:
<blockquote>
Next year we will have removed the froth in the economy. We expect growth to edge up again towards 5.5%. Year-on-year inflation next year will drop to less than 100%.
We can give you specific figures as we move towards year-end because we keep fine-tuning them.
In fact, when I present the 2023 budget in November I should be able to say something about our targeted inflation for 2023 in full.
</blockquote>
He said economic growth will be driven by the mining and agricultural sectors.
Ncube said the government will continue to pay suppliers that meet the value for money criteria adding that in the last six weeks, the government paid $184 billion to the suppliers. He said:
<blockquote>
These payments have been made to various players in the market, so it is not a fact that the government is not paying for goods and services.
As we move to implement the value-for-money process, we are committed to honouring all our obligations provided that they are priced correctly in the public interest, and such payments will not adversely impact the exchange rate and cause inflation.
</blockquote>
Ncube said corruption had resulted in the rapid erosion of budgeted resources, which made it necessary to come up with a supplementary budget presented in July this year. | <a href="https://www.newsday.co.zw/local-news/article/200000751/inflation-to-fall-to-less-than-100-next-year-ncube">NewsDay</a>

Inflation To Drop To Less Than 100% In 2023 Says Mthuli

In a press statement yesterday, Finance Minister Mthuli Ncube said the government will punish its officials who are complicit in government being overcharged for service. 
Ncube said that overpricing has resulted in distortions on the exchange market and that the government had been complicit in letting itself be charged unfairly.
Said Nube in the statement:
<blockquote>
Government has noted with concern pricing of goods and services offered by suppliers to Ministries, Departments and Agencies as well as Parastatals and Local Authorities. The pricing framework adopted by suppliers is characterised by a behavioural tendency for forward pricing models and benchmarking prices to front loaded parallel market exchange rates. These pricing models are leading to extortionist, pricing of goods and services supplied to the Govemment Ministries, Departments and Agents not anchored on economic fundamentals.
Government has also noted with concern the fact that substantial differences in pricing are obtaining in the market for goods and services supplied to the Government as compared to other customers.
</blockquote>
Part of the problem the minister said, is that officials have been following rules to the letter, instead of using the spirit of the rules. Onward, the minister said the government will be stricter – officials will be punished and suppliers overcharging will be blacklisted.
<blockquote>
…Punitive measures shall be taken against officials found to be complicit to overpricing and procurement malpractices while suppliers will be blacklisted for future supply contracts. All existing contracts are now subject to a value for money audit review before payments are made.
</blockquote>
In recent weeks several government officials have <a href="https://news.pindula.co.zw/2022/08/08/jamwanda-says-the-government-has-been-stoking-money-supply/">acknowledged</a> that government is the one that has been causing runaway inflation through local currency payments to infrastructure development suppliers. These suppliers, the officials have said, have been taking the money to the black market to buy US dollars to preserve its value.

Mthuli Ncube Says Government Is Being Overcharged For Services. Threatens To Blacklist Suppliers

Media scholar Mphathisi Ndlovu says there is a possibility that the country’s economic challenges will get worse ahead of the 2023 elections.
Presenting on socio-economic scenarios, challenges and gaps in implementing socio-economic development policy reforms during a Zimbabwe Democracy Institute (ZDI) think tank meeting, Ndlovu said Zimbabwe may experience challenges similar to those it experienced in 2008.
Writing for CITE, <a href="https://cite.org.zw/author/senzeni/">Senzeni Ncube</a> quoted Ndlovu as saying that the Zimbabwe dollar will most likely continue losing its value against the USD. Said Ndlovu:
<blockquote>
My first argument is that the socio-economic hardship will most likely worsen, this is informed by what is happening currently, I think most of us experienced the 2008 crisis, and there is a possibility that there will be a repeat of the 2008 crisis.
If we look at our local currency, there is inflation, there were figures which were shared a few days ago that stated that Zimbabwe’s inflation for June 2022 was at 426 per cent.
With this in mind, we can assume that the local currency will most likely continue losing its value against the United States dollar and there is a possibility that there will be fuel price hikes which is what we have been experiencing.
</blockquote>
Zimbabwe’s year-on-year inflation climbed to 192% in June from 132% in May, according to the Zimbabwe National Statistics Agency (ZIMSTAT).
However, Steve Hanke, a professor of applied economics at Johns Hopkins University in the United States of America, says Zimbabwe’s annual inflation rate is 426%, the highest in the world.
Ndlovu added that the high cost of living will most likely become unbearable and there is a possibility of mass immigration. He said:
<blockquote>
Civil servants have been giving the government an ultimatum that their grievances be addressed, they have been calling the government to address issues of their salary, that they be paid in United States Dollars, so there is that possibility that there will be some crisis at public health institutions will persist.
Not just health institutions but teachers, there is that possibility that they will continue asking for payment in US dollars, the issue of incapacitation, the issue of strike, there is that possibility given the current prevailing socio-economic environment.
</blockquote>
Ndlovu was speaking during a Zimbabwe Democracy Institute (ZDI) think tank meeting on key electoral reform challenges, gaps, demands and strategies held in Bulawayo on Thursday.
More: <a href="https://cite.org.zw/propaganda-war-looms-as-zim-heads-towards-2023-elections/">CITE</a>

"Zimbabwe May Experience A Repeat Of 2008 Crisis"

President Emmerson Mnangagwa is expected to announce measures to address the price rises in basic grocery items and services since the beginning of the year.
Addressing the Seventh National Congress of the ZANU PF Women’s League in Harare on Friday, Mnangagwa said he will announce the measures this Saturday. He said:
<blockquote>
My Government will tomorrow (today) be announcing concrete measures to tame inflation and unwarranted increases in prices and towards securing incomes and savings of our people, particularly women.
We remain committed to ensuring sustainable delivery of social services such as water and sanitation, availing affordable and quality education, and improving access to green energy solutions, among others.
</blockquote>
The prices of basic goods and services, including fuel, transport, electricity, and school fees, among others, have been rising since the beginning of the year.
Zimbabwe’s annual rate of inflation last month was 131.7 per cent from the April rate of 96.4 per cent.
<h4>More: <a href="https://www.herald.co.zw/new-economic-measures-out-today/">The Herald</a></h4>

New Measures To Tame "Price Madness" To Be Announced Saturday

Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Runesu Dzimiri said that the economic policies which are being pursued by Finance and Economic Development minister Mthuli Ncube have impoverished Zimbabweans.
Speaking in an interview with NewZimbabwe.com, Dzimiri said Zimbabwe’s economic situation has continued to deteriorate for workers and ordinary citizens alike since Ncube’s appointment in 2018. Said Dzimiri:
<blockquote>
As labour, we contend that workers and ordinary citizens have not enjoyed a decent life since Ncube came on board.
The bulk of his economic policies are high sounding but fail in essence to lift our members from the pit of extreme poverty.
Of note is the price of daily basic commodities like bread, cooking oil, fuel, and transport fares which are out of reach for the generality of the population and within this melee, we are worried as to exactly where the treasury boss thinks we are heading to.
</blockquote>
Zimbabwe’s year-on-year inflation rose to 131.7% in May, from 96.4% in April, becoming the second-highest inflation rate on the African continent.
Dzimira said it appears Ncube is sabotaging not only the Government but the ruling ZANU PF party and Zimbabweans in general. He said:
<blockquote>
It appears the treasury boss is out to sabotage the government, the ruling ZANU PF party and the people of Zimbabwe at large.
Why does he proceed with opaque and unyielding economic policies?
</blockquote>
Dzimiri implored the Government to address inflation and prioritise the general welfare of the citizenry or risk civil unrest.
<h4>More: <a href="https://www.newzimbabwe.com/zctu-slams-mthuli-ncubes-anti-people-policies/">NewZimbabwe.com</a></h4>

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