Experts have urged the government to take immediate action to address the rising inflation and stabilize the market by reviewing the exchange rate and implementing measures to reduce the tax burden.
In a recent interview Business Weekly Editor, Kudzanai Sharara stressed the importance of addressing the exchange rate to ensure market stability. Sharara noted that as the upcoming monetary policy statement is set to be announced in the coming weeks, there are growing concerns over the weakening of the ZiG currency, which has lost 6.8 percentage points in a tight monetary environment.
Dr. Prosper Chitambara, an economist echoed similar concerns, attributing the recent surge in commodity prices to the increase in taxes by the Ministry of Finance and the ongoing famine caused by water shortages. Chitambara pointed out that these factors have severely impacted the cost of living, driving significant price hikes in essential goods such as food, beverages, and housing.
The ripple effects of these economic challenges are being felt globally. In the Central African Republic, prices have surged by 11.5%, up from 6.8% in December. Meanwhile, in the United States, inflation has spiked by 14.6%, up from the previous rate of 2.5%.
In Zimbabwe, the Zimbabwe National Statistics Agency (Zimstat) has confirmed the sharp rise in prices, affecting both the ZiG currency and the US dollar. Food, beverages, and housing have emerged as the hardest-hit sectors, further exacerbating the already difficult economic conditions. As inflation continues to soar, economists are calling for immediate action to address underlying issues, including revising tax policies, tackling the exchange rate instability, and securing reliable water sources to mitigate famine effects.
