- ZiG saw a sharp 1.4% month-on-month inflation rate in August 2024, a significant increase of 1.5 percentage points
- US Dollar had a more modest 0.2% month-on-month increase, gaining 0.3 percentage points
- The inaugural spike in ZiG inflation represents the first time the new national currency has faced significant price pressures since replacing the previous Zimbabwe Dollar
Harare- In a sign of mounting economic pressures, the August 2024 inflation rate for Zimbabwe's national currency, the Zimbabwe Gold (ZiG), hit a new high, marking the first time the legal tender has seen significant price increases.
The month-on-month inflation rate for the ZiG reached 1.4 percent in August, a sharp increase of 1.5 percentage points over the previous month's rate of -0.1 percent.
This means the average price of goods and services, as measured by the ZiG Consumer Price Index (CPI), rose by 1.4 percent between July and August of this year.
The inaugural spike in ZiG inflation comes as the currency has been the official legal tender of Zimbabwe since April, replacing the previous Zimbabwe Dollar.
Meanwhile, the US Dollar (USD) Consumer Price Index saw a more modest 0.2 percent month-on-month increase in August 2024, gaining 0.3 percentage points from the July 2024 rate of -0.1 percent.
On an annual basis, the year-on-year inflation rate for August 2024, as measured by the all-items USD CPI, was 3.7%.
There are also concerns that speculative activity in ZiG markets may be driving up prices.
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