BY TATIRA ZWINOIRA
Zimbabwe National Statistical Agency (ZimStat)’s macroeconomics director Tafadzwa Bandama says current trends were pointing to a rise in month-on-month inflation, after an increase of 1,4 percentage points in June to 3,9% from 2,5 percentage points recorded in May.
The increase comes as the statistical body recorded a decrease in the annual inflation rate from a May figure of 161,9% to 106,6% in June.
The increase in the month-on-month inflation for June coincided with the release of Statutory Instrument (SI) 127 of 2021 which penalises the pricing of goods above the official auction rate.
The SI, business recently warned, was likely to result in increased prices which would fuel inflation and create havoc in the economy.
“Our trends show that month-on-month inflation is rising if you look at the results for this month, but our annual inflation rate is going down,” Bandama told NewsDay after the announcement of the June inflation and trade statistics in Harare yesterday.
Further asked why ZimStat’s figures differed from those of independent bodies and individuals such as renowned American economist Steve Hanke, Bandama queried the methodology they use.
“We would like to see the methodology which is used in deriving those inflation figures because we are the official body in Zimbabwe that collects data to come up with the inflation statistics. It is important that those independent bodies or experts explain their methodology because it’s actually us who go into the market to get those figures and that is all I will say on the matter,” she said.
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“Our job is not to explain the why, that is for government and the policymakers. We simply capture the data and report.”
The inflation figures come at a time when the cost of living in the country continues to rise, currently standing at $40 682 according to the Consumer Council of Zimbabwe.
The Confederation of Zimbabwe Industries warned this month that as a result of SI 127 of 2021, prices of goods and services in United States dollars would rise, in what they called “US dollar inflation”.
Bandama announced that going forward, ZimStat would be publishing inflation statistics by province in line with government’s policy of devolution.
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