- Month-on-month inflation rate declined to 11.7%, a 25.5 percentage point drop
- Despite the decline in inflation, prices for most products in ZWG terms continued to rise
- Zimbabwe Gold remained under pressure in the parallel market
- The year-on-year inflation rate in USD terms stood at 3.3%
Harare- Zimbabwe's inflation landscape witnessed a notable shift in November 2024, as the month-on-month inflation rate plummeted to 11.7 percent, representing a substantial 25.5 percentage point decrease from the preceding month's rate of 37.2 percent.
This is according to the latest data by Zimstat.
This downtrend signifies a moderation in price pressures, with the all-items ZWG CPI indicating an average price increase of 11.7 percent between October and November 2024.
The downward trend was also exhibited in US dollar terms, with month-on-month inflation rate shedding 0.6 percentage points to reach 0.1 percent in November 2024.
This deceleration suggests a stabilisation of prices in the economy.
In terms of year-on-year inflation, the annual percentage change in the all-items USD Consumer Price Index (CPI) stood at 3.3 percent in November 2024.
This metric provides insight into the underlying inflationary trends in the economy.
However, prices for most basic products in ZWG terms continued to rise rather than decrease or remain static.
This trend was also observed in USD terms, despite the reported decrease in inflation.
This dichotomy suggests that the decline in inflation may not necessarily translate to relief for consumers.
Moreover, the Zimbabwe Gold failed to recover from last month's decline in the parallel market, only firming up in the formal market.
This has resulted in continued currency volatility, with the parallel market exchange rate remaining under pressure.
The persistence of currency carnage is likely to perpetuate price instability and undermine the effectiveness of monetary policy interventions.
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