Month on month inflation spiked in January 2021, as expected, owing to beginning of the year price reviews. The remainder of the quarter saw month on month inflation rates taking a downward trend, registering lower rates than the previous quarter (4Q20). On the other hand, the local currency gradually increased the first half of 1Q and remained fairly constant for the rest of the quarter, on the back of an increase in money supply that took place in January and February. Consequently, parallel market premium increased between 4Q20 and 1Q21. On the Zimbabwe Stock Exchange (ZSE), the All Share Index has been on an upward trend, outperforming 4Q21 performance. ZSE Market Cap also increased in real terms although value traded seems to be weak over the period under review.
