Zimbabwe inflation up again

HARARE – Zimbabwe’s annual inflation rose again this month, this time to 54.5% up from 51.5% in September.

Inflation had been on the decline until August when it stood at 50.2% having peaked at 837.5% in July last year.

Month-on-month inflation rose from 4.73% in September to 6.4% this month, the highest since August last year when it was 8.4%. Month-on-month inflation rose by 35.5% in July last year when annual inflation peaked at 837.5%.

Prices rocketed in September and October as the local currency fell drastically against the United States dollar largely because of the backlog by the central bank to clear funds allotted to enterprises at the foreign currency auction.

The government, however, blamed the collapse of the local currency on saboteurs and illegal foreign currency dealers.

Figures provided by United States economist, Steve Hanke, who uses the black marker rate to calculate inflation show that it is slowing down.

Hanke’s inflation index rose from 66.5% on 4 September to 98.7% on 9 October, but it was down to 85.8% yesterday.

The poverty line also rose drastically from $6 653.65 in September to $7 118.32 this month.