Inflation figures absolve Prof Mthuli Ncube

by | Apr 25, 2021 | Business, Local News | 0 comments

Staff Writer

Finance and Economic Development Minister Professor Mthuli Ncube`s early 2020 promise that the country`s inflation will stabilise, is now coming to pass as the country`s year on year inflation rate has gone below 200 percent for the first time in over a year.

In his writings and interviews between 2019 and 2020, Professor Ncube told people that he had a raft of measures set to clip inflation, many interpreted his sentiments as bluff.

Figures released by the Zimbabwe National Statistics Agency (ZIMSTAT) in the April 2021 April Consumer Price Index show that the country`s year on year inflation fell from 240.55 percent in March to 194.07 in April.

This means that although prices are still going up, they are doing so in a receding manner.

“The CPI for the month ending April 2021 stood at 2,803,57 percent compared to 2,759,83 in March 2021 and 953,36 in April 2020,” the CPI read.

Improvements in the economy were also captured in the CPI, as a comparison of month on month inflation figures with those of last year showed a marked improvement.

The month on month inflation has also been dropping in equal measure, in July 2020 it was at 35.5 percent and now it stands at 1.6 percent.

This translates to thin and marginal price increases compared to the runaway price hikes of 2020.

Government is upbeat on the country`s economic prospects.

Finance and Economic Development Minister Professor Mthuli Ncube said the good rains and the promising agricultural season is set to improve the country`s economic prospects.

In January 2020, Minister Ncube told the media, when inflation was still at 500 percent that it will stabilise, many did not believe him but the figures presented by ZIMSTAT seem to have absolved his projections.

Minister Ncube has had a difficult task of bringing back order in an economy that had improvised on key fundamentals, the reform process though gradual is beginning to show signs of progress.