Zim inflation nears 800% mark

Harare, (New Ziana) – Zimbabwe’s annual inflation reached 785.55 percent in May after gaining 19.98 percentage points from the previous month, the Zimbabwe National Statistics Agency (Zimstat) said on Tuesday.

Inflation stood at 765.57 in April.

Month-on-month inflation, however stood at 15.13 percent, a marginal
decline from 17.64 percent the previous month.

“The Consumer Price Index for the month ending May 2020 stood at 1
097.65 compared to 953.36 in April and 123.65 in May 2019,” Zimstat
said.

The continued upward trend in annual inflation reflects an escalation
in prices of goods and services as reflected in the rise of the food
poverty line.

According to Zimstat, Zimbabwe’s poverty datum line jumped to $7 426
in April from $6 421 in March.

Parallel market driven instability of the exchange rate continues to
push up the prices of goods and services.

Shortages of the United States dollar on the official market where the
exchange rate is fixed at USD1:ZW25 have largely been blamed for the
reliance by companies on the black market where the local currency is
now trading at over $70 to the green back.

Last month the rate was around $55 per dollar.

The Reserve Bank of Zimbabwe has in the past two months put a cocktail of measures, among them limiting instant bank transfer amounts, to try and curtail the black market but the measures do not seem to have been effective as the rate continues to go up.
New Ziana