by Business Writer

The month-on-month inflation rate in February 2021 was 3.45 percent, shedding two percentage points on the January 2021 rate of 5.43 percent as prices for goods and commodities start to stabilize on the back of the market's self-correcting mode.

The softening inflation figures for this month reflect on the impact of monetary intervention to correct market indiscipline in pricing threatening the market stability that the economy had established since the second half of 2020.

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said he expected basic commodities price stability to override the recent increase of prices.

“The increase in inflation in January 2021 largely reflected the adjustments in administrative levies and charges that include electricity, municipal charges, rates and health charges, some of which are traditionally effected at the beginning of the year,” he said

The month-on-month inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the previous month in the current year.

The month-on-month food and non-alcoholic beverages inflation rate stood at 4.42 percent in February 2021, shedding 3.42 percentage points on the January 2021 rate of 7.84 percent.

The month-on-month non-food inflation rate stood at 2.73 percent, shedding 0.97 percentage points on the January 2021 rate of 3.70 percent.

The CPI for the month ending February 2021 stood at 2, 698.89 compared to 2, 608.79 in January 2021 and 640.16 in February 2020.

The year on year inflation rate (annual percentage change) for the month of February 2021, as measured by the all items Consumer Price Index (CPI) stood at 321.59 percent.