October ZiG inflation plunges 50 percentage points, sparking questions

THE Zimbabwe Gold (ZiG) annual inflation rate for October reportedly fell by 50 percentage points to 32,7%, despite the exchange rate barely moving and consumer prices remaining high, suggesting statistical base effects rather than genuine disinflation.

In September, the ZiG annual inflation rate was 82,7%, marking a fall of 11,1 percentage points from August.

The unusually sharp 50-percentage-point drop in the annual rate, without corresponding currency or policy shifts, has fuelled speculation that the figures reflect statistical base effects or data adjustments rather than genuine disinflation.

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