Zimbabwe Inflation Has Almost Doubled, Reviving 2008 Memories
Recent statistics by statistics agency, ZIMSTATS has revealed that inflation in Zimbabwe has almost doubled in June. This comes after prices of basic commodities such as cooking oil and other basics soared in Zimbabwe.
The country has recorded annual inflation hit 175.66%, up from 97.85% in May, the highest rate since the adoption of the multi-currency regime in 2009.
ZIMSTATS also observed that consumer price index rose to 39.26% in June compared to 12.54% in May. If the figure continues to rise and reach the monthly 50% figure, that would mark the start of hyperinflation.
The agency added that prices of basic goods also rose during the month as much as 200%, the as the local currency fell.
An economist at NKC African Economics, Jee-A van der Linde, has projected a further deterioration of the economy this year. Jee-A van der Linde said:
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The economy is in bad shape and conditions continue to worsen. There is no doubt that the economy is going to suffer a contraction this year.
Zimbabwe recently reintroduced the Zimbabwe dollar and banned the use of all foreign currencies for domestic transactions. This was done through Statutory Instrument 142 of 2019.
The nation is divided over the move and some prominent business people have already approached the courts in a bid to force the government to reverse the SI. Some civil society groups have threatened to take to the streets in protest against the move.
The Business community also responded in varying ways, with some raising whilst some lowered prices of their commodities.
More: Reuters
