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Zimbabwe’s January 2025 inflation figures show steep increases across metrics

29 Jan, 2025 - 13:01 0 Views
Zimbabwe’s January 2025 inflation figures show steep increases across metrics
Tapiwanashe Mangwiro
January 2025 has marked a significant surge in inflation across Zimbabwe, with the latest figures released by the Zimbabwe National Statistics Agency (ZIMSTAT) highlighting stark changes in the ZWG, USD, and Weighted Consumer Price Indices.
These developments come against a backdrop of economic uncertainty, with rising costs increasingly burdening the nation’s populace.
The ZiG Consumer Price Index (ZiG CPI) rose to 183.76 in January 2025, up from 166.30 in December 2024. This corresponds to a month-on-month inflation rate of 10,5 percent, a sharp increase of 6,8 percentage points compared to December’s 3,7 percent.
According to ZIMSTAT, this surge indicates that prices for goods and services measured in ZiG increased by an average of 10,5 percent in just one month.
The breakdown reveals that food and non-alcoholic beverages inflation stood at 6,8 percent in January, a modest rise from 4,6 percent in December. However, non-food inflation soared to 12,5 percent, a dramatic increase from December’s 3,2 percent. These figures underscore the escalating cost of living for consumers relying on ZiG for their daily needs.
The USD Consumer Price Index (USD CPI) experienced an even sharper rise, climbing to 121.43 in January 2025 from 108.91 in December 2024. The month-on-month inflation rate for USD transactions was a staggering 11,5 percent, up from a mere 0,6 percent in December.
ZIMSTAT attributed this increase to a broad-based rise in prices across all categories. Food and non-alcoholic beverages inflation in USD terms jumped to 16,8 percent, up from December’s 1,9 percent.
Meanwhile, non-food inflation also saw a significant leap, rising to 9,1 percent from a flat rate of 0,0 percent in the previous month. Year-on-year, the USD inflation rate reached 14,6 percent, reflecting the sustained upward trend in prices over the past year.
The Weighted Consumer Price Index, which combines the USD and ZiG indices geometrically, also showed a marked increase. The index rose to 125.40 in January 2025 from 112.39 in December 2024, translating to a month-on-month inflation rate of 11,6 percent.
Food and non-alcoholic beverages inflation in the Weighted CPI category climbed to 13,2 percent, while non-food inflation increased to 10,6 percent. These figures highlight the compounded pressures faced by households and businesses operating across Zimbabwe’s dual-currency system.
The inflationary pressures are not only squeezing consumer wallets but also pushing more Zimbabweans toward poverty. According to ZIMSTAT, the Food Poverty Line (FPL) for January 2025 was ZiG 861.14 per person, representing the minimum amount required to afford a daily energy intake of 2,100 calories. The Total Consumption Poverty Line (TCPL), which includes both food and non-food items, stood at ZiG 1 255.78 per person.
These figures underscore the growing economic strain on households, as wages struggle to keep pace with the rising cost of living. ZIMSTAT’s methodology, which employs the lower-bound poverty line, reveals the widening gap between income levels and basic needs.
As inflation continues to rise, the affordability of essentials such as food, healthcare, and education remains a critical challenge for many Zimbabweans. Policymakers face mounting pressure to implement measures that can stabilise prices and alleviate the economic burden on citizens.
The January 2025 inflation figures paint a sobering picture of Zimbabwe’s economic landscape. With inflation rates accelerating across all indices and the poverty datum lines highlighting the growing financial strain on individuals, the need for effective economic interventions has never been more urgent.
As ZIMSTAT continues to monitor and report on these trends, the nation awaits actionable strategies to address the rising cost of living and its far-reaching impacts.

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