'Drop In Rate Of Inflation To 321.59% Illusory'

An economic commentator says there is nothing to celebrate about the drop in Zimbabwe’s year-on-year inflation for the month of February to 321,59 per cent.

Using the Twitter handle @baba_nyenyedzi, the independent economic analyst said the fall in the rate of inflation is attributable to the fixed Reserve Bank of Zimbabwe (RBZ) forex auction rate which has hovered just above US$1: ZWL$80 for several months in a row. He said:

Inflation came down from 362% to 321.59%. This has a lot to do with the fixed “auction” rate. Kicking the problem down the road.

What is ominous is the large quantity of money in the economy. It will eventually inflame the inflation embers.

Inflation came down from 362% to 321.59%. This has a lot to do with the fixed “auction” rate. Kicking the problem down the road. What is ominous is the large quantity of money in the economy. It will eventually inflame the inflation embers. pic.twitter.com/xdYbFdAC7w

Buy Samsung, itel, Redmi smartphones in Zimbabwe

WhatsApp: +263715068543

— Tinashe M (@baba_nyenyedzi) February 25, 2021

In its latest statistics, the Zimbabwe National Statistics Agency (Zimstat) said month-on-month inflation for February decreased by 1,98 percentage points to 3,45 per cent from 5,43 per cent recorded in January.

The statistics agency also revealed that year-on-year inflation for the month of February stood at 321,59 per cent. Zimstat said:

The month-on-month inflation rate in February 2021 was 3,45 per cent shedding 1,98 percentage points on the January 2021 rate of 5,43 per cent.

The year-on-year inflation rate for the month of February 2021 as measured by the all-items Consumer Price Index (CPI) stood at 321,59 per cent.