A recent World Bank report has revealed that Zimbabwe continues to lead the ten countries with the highest food price rise globally despite a significant drop in its year-on-year food inflation.
Development Diaries reports that the bank revealed that there was an increase in almost all low- and middle-income countries, with Zimbabwe finishing first.
The report read, ‘Domestic food price inflation remains high around the world. Information from the latest month between October 2022 and February 2023 shows high inflation in almost all low- and middle-income countries.
‘With inflation levels above five percent in 94.1 percent of low-income countries, 86 percent of lower-middle-income countries, and 87.0 percent of upper-middle-income countries and many experiencing double-digit inflation’, read the World Bank report.
According to the Reserve Bank of Zimbabwe, the cost of food in Zimbabwe increased 136.90 percent in February 2023 over the same month in the previous year.
Zimbabwe has continued to face poor harvests, high food prices and lingering socio-economic effects, which resulted from the Covid-19 pandemic, and has aggravated food insecurity in the country.
According to Action Against Hunger, Zimbabwe has since its independence in 1980 experienced a tense political environment and an unstable economy.
A report from Zimbabwe National Statistics Agency in January 2023 indicated that almost 80 percent of transactions for food purchases are in USD, with the rest in Zimbabwean dollar (ZWL).
It is also understood that despite progressive declines in monthly and annual inflation over the last few months, the cost of living remains very high and poor households continue to struggle to meet their food and non-food needs.
Also, the local currency has continued to depreciate against the USD in formal and informal markets, as goods and services are increasingly priced in USD or ZAR.
Development Diaries calls on Zimbabwe’s Finance and Economic Development ministry to develop economic plans and policies to reduce the inflation rate and its significant effect on the country’s poor.
Source: New Zimbabwe
Photo source: USAID
