Zimbabwe inflation at 785.55% in May

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HARARE – Zimbabwe’s inflation rose to 785.55 percent year-on-year in May from 765.57 percent the previous month, Zimstat said on Tuesday, as citizens grapple with rising prices of basic goods and a weakening currency.

On a month-on-month basis inflation slowed to 15.13 percent from 17.64 percent during the same period, said Zimstat.

The central bank forecasts the annual inflation rate to fall to 50 percent by the end of the year but analysts say price pressures will remain elevated due to a weak exchange rate and shortages of food following a drought

The coronavirus outbreak has hit an economy that was experiencing its worst crisis in a decade, marked by shortages of food, medicines and foreign currency.

Economic analysts say the government’s budget is under pressure from spending to combat the coronavirus outbreak, which will force authorities to resort to printing money, stoking inflation further.- Reuters