Zimbabwe’s month-on-month inflation has risen sharply, from 75.86% in April to 97.85% in May, the Zimbabwe National Statistics Agency (ZimStat) has revealed.
The Agency further disclosed that prices of goods rose by 12.54% in May as compared to 5.52% in April.
According to a NewZimbabwe.com report, in May this year, ZimStat adopted a new method of calculating inflation called the Consumer Price Index (CPI). The report adds:
Under CPI the Classification of Individual Consumption by Purpose (COICOP) calculation methodology will be used. COICOP is a reference classification which divides the purpose of individual consumption expenditures by three institutional sectors, namely household, non-profit institutions serving households, and general government.
Market analysts argue that if ZimStat had continued using the old calculation system, the inflation rate for the month would now be over 200 % effectively pushing the country into the hyperinflationary period.
Severe foreign currency shortages leading to the sharp depreciation in the value of the local currency on the parallel market are considered to be the catalyst to the runaway inflation.
More: New Zimbabwe
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