A month after coming close to its highest level in a decade Zimbabawes month on month inflation slowed to 17.5 per cent for the month of November. A sharp decline from the October 38%figure. However, year on year inflation showed no signs of slowing as it is derived at 480.07% for the month of November, up from 440.01% in October.
For the most part month on month, inflation has hung around 17% in spite of inconsistencies in the measurement of inflation which other sources place at a higher level. The introduction of additional cash into the economy seems not to have affected inflation by the end of November though this may have more to do with the amount that was injected not being adequate to effect real change. Prices of goods and services still increased albeit slower than the previous month.
The year-on-year inflation measure soared again as the figure was derived at 480.01%. The government stopped the publication of the year on year inflation figure giving the reason of unequal currency bases. It was last reported in June at 175%. The figure interestingly is edging closer to the Steve Hanke calculated inflation rate for Zimbabwe. The government will only resume publishing the year on year inflation figures in February 2020 and analysts expected inflation to be around 600% by then.
The basket of goods used to calculate CPI In Zimbabwe has four main components: Food and Non-Alcoholic Beverages (31.3 per cent of total weight); Housing and Utilities (27.6 per cent); Transport (8.4 per cent) and Miscellaneous Goods and Services (6.5 per cent). Others components of the basket include Household Contents, Equipment and Maintenance (5.3 per cent); Alcoholic Beverages and Tobacco (4.9 per cent); Clothing and Footwear (4.3 per cent) and Education (4.3 per cent). Communication, Recreation and Culture, Health and Restaurants and Hotels account for the remaining 7.5 per cent of total weight.