Zim inflation eases to 737% in June

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Harare, (New Ziana) – Zimbabwe’s annual inflation eased by 48.29 percentage points to 737.26 percent in June, the Zimbabwe National Statistics Agency said on Tuesday.

In May, inflation, at 785.55 percent, threatened to breach the 800 percent mark as prices of goods and services had continued on a rampage in months before.

“The Consumer Price Index for the month ending June 2020 stood at 1 445.21 compared to 1 097.65 in May 2020 and 172.61 in June 2019,” Zimstat said.

Month-on-month inflation, however gained 16.63 percentage points to close the month at 31.66 percent.

An unstable exchange rate, driven by changes on the parallel market has largely been responsible for driving inflation in the country.

The instability drove food prices out of the reach for many with the poverty line for a family of five estimated at $8 484 in May.

The recent unpegging of the Zimbabwe dollar against the greenback and the introduction of a foreign currency auction system is expected to stabilise the exchange rate and in turn prices in the long run, bringing inflation under control.

The rate, previously fixed at $25, currently stands at $65.87 on the official market after it was allowed to freely float, while on the parallel market it is slightly higher at between $85 and $95.
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