By Own Correspondent

DESPITE the month on month inflation rate receding to 0,5% as reported by the Zimbabwe National Statistics Agency (ZIMSTAT) for the month of February 2025, the conditions of living for workers are moving in the opposite direction.

Latest data from the stats agency shows that the inflation rate for the local unit tumbled to 0.5 percenty in February 2025, shedding 10 percent on the January 2025 rate of 10,5 percent implying that prices as measured by the all items ZWG CPI, increased by an average of 0.5 percent from January 2025 to February 2025.

“The ZWG month-on-month Food and Non-Alcoholic Beverages inflation rate was 0.8 percent in February 2025, shedding 6.0 percentage points on the January 2025 rate of 6.8 percent while the month-on-month non-food inflation rate was 0.3 percent shedding 4,3 percent on the January 2025 rate of 4,6 percent,” said Zimsat.

However, prices have not reflected the latest dynamism even in local currency with suppliers of basic raw materials and services demanding payment in hard currency.

Experts have warned that the decline of inflation is largely influenced by a tight monetary policy regime being pursued by the Reserve Bank of Zimbabwe (RBZ)

“Such economic trends could be signals of deeper problems in the economy such as reduced productive borrowing, and disposable incomes prompting very slow economic growth. The policy measures, if not well managed, can also choke companies’ capability to invest in new projects,” an anonymous researcher said.

The stats organ said the US$ month-on-month inflation rate for the period stood at 0,2 percent in February 2025, shedding 11.3 percent on the January 2025 rate of 11,5 percent implying that prices as measured by the all items index increased by an average of 0,2 percent from January 2025 to February 2025.