World Bank sees Zimbabwe as having second highest rising food prices

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THE World Bank says Zimbabwe has the second highest food prices in the world after it recorded a real food inflation annual rate of 52.

In an update dated August 11, 2022, released on Saturday, Zimbabwe was recorded as having the second highest annual food inflation rate after Lebanon which had a comperative 152%.

According to the Zimbabwe National Statistics Agency (ZimStat), the food poverty line (FPL) for one person in August 2022 was $20 461, this up 12,47% from $17 909 recorded in July.

The increase in food inflation locally is due to the continued depreciation of the Zimbabwe dollar that has caused increases in the prices of basic goods and services. Resultantly, the Treasury and central bank implemented tighter fiscal and monetary policies leading to Zimbabwe dollars disappearing from the market creating an undervalued parallel forex exchange rate.

“Food inflation for each country is based on the latest month from April to July 2022 for which the food component of the Consumer Price Index (CPI) and overall CPI data are available. Real food inflation is defined as food inflation minus overall inflation,” the World Bank said, in its new report.

After Lebanon and Zimbabwe, respectively, follows Iran with a real food annual inflation rate of 36%, Sri Lanka (30%), Turkey (16%), Colombia (14%), Djibouti (14%), Burkina Faso (11%), Hungary (10%) and Rwanda (10%).