Month on month inflation continued its deceleration as it decreased at a decreasing in September 2021, rising to 4.78% from 4.2% reported at the close of August 2021. This represents a -0.58% increase from August levels. Meanwhile the CPI now stands at 3,342 from 3,191 at the close of last month.
The ZimStat CPI index is derived from multiple weighted baskets that track the prices of food and non-alcoholic beverages, alcoholic beverages, transport, health among others. According to the rebased data from Zimstat, which was collected mid-August. The rise in the m-o-m inflation is mostly attributable to the shock rise of the parallel market exchange rate which has risen to around 1:170 since the middle of August to the period of the collected data.
According to Zimbabwe National Statistics Agency (ZIMSTAT), Food Poverty Line (FPL) for one person for September was $4,734.33, a 4.82% increase from $4,516.52 at close of August while year to date, the FPL has risen 35.51%.
Total Consumption Poverty Line (TCPL) for one person increased by 4.78% to $6,653.65 from $6,350.21 in August, and the TCPL has gained 42.48% in 2021.
For a while, consumer disposable income has improved due to a phase of stable inflation as service providers have been reporting increase in volumes since the half year. However, salaries still lag inflation growth and consumers continue to be strained on disposable income which might have led to even greater volumes growth in the quarter.
The increase in the poverty datum line is in line with the increase in inflation witnessed in September, where month on month inflation was at 4.7%. The rise in prices in food stuffs mainly during the month of September due to higher parallel market rates has begun to affect livelihoods whom are somewhat struggling to meet standard costs
According to ZimStats, Mashonaland Central remains the most expensive province to live in as a single person needs $7,794.22 to survive a month, with Mashonaland East coming in a close second with a monthly expense of $7,457.97. Matebeleland South is the least costly province in Zimbabwe as it costs a total of $5,741.17 to live a month.
In September it did cost $6,590.26 to live in Harare – Harare