2026-10-06T17:02:52Z https://api.figshare.com/v2/oai

oai:figshare.com:article/34018659 2026-09-29T11:48:48Z category_25984 category_25978 category_26005 category_27520 item_type_12 month_year_09_2026

Beyond Inflation: Measuring the Real Cost of Living in Zimbabwe’s Multi-Currency Economy Knowledge Mhodi (24999778) Macroeconomics (incl. monetary and fiscal theory) International economics Welfare economics Poverty, inclusivity and wellbeing Zimbabwe cost of living inflation consumer price index Zimbabwe Gold (ZiG) Exchange rates parallel exchange market poverty lines Food Poverty Line online prices <p dir="ltr">Since the Zimbabwe Gold (ZiG) was introduced in April 2024, Zimbabwean households have earned and spent in two currencies: most shop shelves are priced in US dollars, while wages, grants and ZIMSTAT's poverty lines are often set in ZiG. This paper asks whether the official consumer price indices, exchange rate and poverty lines describe what living actually costs. It covers May 2024 to September 2026 and combines 12,001 audited retail price observations with ZIMSTAT releases and official exchange rates.</p><p><br></p><p dir="ltr">Four findings stand out. First, ZiG prices roughly doubled (+102%) because the official rate did (ZiG per dollar +98%); converted to dollars they rose only 1.8%, against 17.5% for ZIMSTAT's US-dollar index. Second, matched supermarket essentials did not rise faster than that index; between January 2025 and September 2026 they changed by −5.5%. Third, the rates people pay stayed above the official rate: on all 16 dates between August 2024 and September 2026 with a published informal rate, the informal market charged more ZiG per dollar than the official rate (about a third more through 2025, 18% more in September 2026), and on the one day with till rates supermarkets charged 16%–20% more. Fourth, at the official rate the Food Poverty Line buys 2,100 kcal a day only with a starch-heavy diet: an ordinary family basket needs 10%–53% more, and small packs cost a median 17% more per unit than large ones.</p><p><br></p><p dir="ltr">Inflation is measured consistently; the cost of living is understated at the points where official figures meet household transactions.</p><p><br></p><p dir="ltr">Data and code: the price data, exchange-rate series, analysis code, tables and figures are available at https://research.zimindex.co.zw.</p><p><br></p><p dir="ltr">This is a preprint and has not been peer reviewed.</p><p><br></p><p dir="ltr">JEL classification: E31, F31, I32, O55</p><p><br></p> 2026-09-29T11:48:48Z Text Preprint 10.6084/m9.figshare.34018659.v3 https://figshare.com/articles/preprint/_b_Beyond_Inflation_Measuring_the_Real_Cost_of_Living_in_b_/34018659 CC BY 4.0