However, Dr Chitambara, an expert affiliated with the Labour and Economic Development Research Institute of Zimbabwe, offered a different perspective.
In a surprising turn of events, the monthly inflation rate in Zimbabwe for June has stabilised at 0.0 percent, prompting the Reserve Bank of Zimbabwe (RBZ) to commend its own measures since the introduction of the new ZiG (ZwG) currency in April.
Mr. Persistence Gwanyanya, an economist and advisor to the RBZ, stated that the stabilisation of prices is largely due to the new currency. He highlighted the fact that prices did not increase in June, attributing this to the introduction of ZiG, which has helped stabilise the economy.
"What is particularly interesting is that this price stabilisation has occurred during a period of famine," said Mr. Gwanyanya. "This means that many families will have more disposable income to purchase essential items. While we are not out of the woods yet, this progress shows a glimmer of hope for the future."
However, Doctor Prosper Chitambara, an expert affiliated with the Labour and Economic Development Research Institute of Zimbabwe, offered a different perspective. He pointed out that in May, the monthly inflation rate in local currency had already turned negative, indicating that prices had risen in June. According to Dr. Chitambara, monthly inflation in US dollars decreased to -2.4 percent in June from 0.1 percent in May.
"On an annual basis, inflation in US dollars rose to 3.8 percent in June from 3.5 percent in May," Dr. Chitambara explained. "Our economy has become highly dollarised. When measuring inflation, we look at the situation in terms of both USD and ZiG, combining them to get a blended inflation rate."
Adding to the discourse, Ms. Chenaimoyo Mutambasere, an economist based in the UK, suggested that the apparent price stability might be due to retailers having already increased their prices substantially prior to June. She cautioned against attributing the stabilisation solely to the ZiG currency.
"We cannot draw conclusions based on such a short period," said Ms. Mutambasere. "The ZiG was only introduced at the end of April, so it is premature to use just two months of data to evaluate its impact."
Last week, the Zimbabwe National Statistics Agency (ZimStat) reported that monthly inflation had dropped to 0.0 percent from 2.4 percent in May. Despite this, some economists remain sceptical about the true stability of prices in the local currency, citing the widespread use of the US dollar as a complicating factor.
Many Zimbabweans remain wary of the new currency. Reports suggest that in certain regions, some people have yet to even handle the ZiG since its launch. The debate continues as the nation watches closely to see if this trend in inflation will persist.
COMMENTS