Paul Nyakazeya, Group Digital Editor 
THE local construction sector’s Building Materials Price Index (BMPI) declined by 5,3 percentage points during the quarter to December 2021, says the Zimbabwe National Statistics Agency (Zimstat).
This means the prices of building materials declined during the period under review from 13,8 percent in September to 8,5 percent in December last year.
“The year-on-year Building Material Price Index #BMPI rate of change stood at 42,7 percent in December 2021. The #BMPI for the month ending December 2021 stood at 2 209,97 compared to 2 036,48 in September 2021 and 1 548,21 in December 2020,” Zimstats said in a trading update last week.
These developments came on the back of a surge in individual housing construction and private sector-led infrastructural development in the country. The property sector has however, been subdued during the period under review due to the negative effects of Covid-19.
Research firm, Old Mutual Securities (Omsec), said the property market is likely to remain under pressure during the first quarter of the year due to the effects and restrictions of the Covid-19 pandemic, and a persistently difficult macro-economic environment.
In a recent note, the research firm said apart from the effects of the pandemic, property remains a good medium to long term hedge against inflation.
“The (property) market is likely to remain under pressure from Covid-19 restrictions and low rental yields. However, the adoption of Zimbabwe dollar-based valuation is expected to support capital price appreciation.
“Property sector players who can adapt and provide properties that can service the specialised needs of growing sectors of the economy such as agriculture, warehousing, and logistics as well as sections of the retail and informal sector are expected to improve on their earnings yields. Increased dollarisation of the market is expected to depress trades,” Omsec said.
ZimStat said the country’s producer price index’s month-on-month rate of change in December 2021 was 0,6 percent, shedding 10,3 percentage points in the November 2021 rate of 10,9 percent.
“The year-on-year Producer Price Index #PPI rate of change stood at 69,2 percent in September 2021. The #PPI for the month ending December 2021 stood at 6 424,57 compared to 6 384,39 in November 2021 and 3797,50 in December 2020,” Zimstat said.
In their January inflation and currency developments update, the Confederation of Zimbabwe Industries (CZI) said the 2022 national budget has forecast an average inflation target of 32,6 percent and end period range of 15 percent to 20 percent in 2022.
“Given that there was no marked decrease in inflation for January 2022 compared to December 2021, the expectation is that the inflationary pressures will start slackening in February. However, the rapid deceleration in inflation that was witnessed in 2021 was mainly because 2020 was a high inflation period, which peaked at more than 837 percent in July 2020,” CZI said.
Commenting on the producer price index for agriculture during the period under review, Zimstats said the month-on-month rate of change in December 2021 was 11,8 percent, gaining 2,6 percentage points on the November 2021 rate of 9,2 percent.
“The year-on-year Producer Price Index for Agriculture #PPIA rate of change stood at 88,5 percent in December 2021. The #PPIA for the month ending December 2021 stood at 226,73 compared to 202,81 in November 2021 and 120,29 in December 2020,” Zimstat said.
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