Zimbabwe Inflation Reaches 4,29%, Highest Since 2012

Latest figures released by the Zimbabwe National Statistics Agency (Zimstats) last week, show that the country’s annual inflation rate rose 1,38 percentage points to 4,29 percent last month from the June rate of 2,91 percent. The latest figure on inflation is a record high since 2012.

In an interview with The Chronicle, an economic commentator Mr Trust Chikohora attributed the rsising inflation to the persistent pressure on the parallel market exchange rate created by the shortage of foreign currency. Said Chikohora:

The pressure on the parallel market exchange rate has been going up and it’s starting to be felt now due to the shortage of foreign currency because most of our goods and even raw materials are imported especially from South Africa and other parts of the world. When there is pressure on the parallel market exchange rate, it is seen in price increases because even fuel is also affected and we may see that trend as long as the parallel market rate is increasing

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