The annual inflation rate for Zimbabwe soared to nearly 300% in August according to the IMF, eNCA reports. According to the IMF, the rapid increase in the inflation rate was fueled by a collapsing currency. In a statement published by AFP, The IMF said Zimbabwe’s inflation rate, which soared to almost 300% in August was fueled by weakening confidence in the system among other reason.
In a statement, the IMF said:
GDP growth in 2019 is expected to be steeply negative, as the effects of drought on agricultural production and electricity generation, impact of cyclone Idai, and the significant fiscal consolidation to correct past excesses serve to drag on growth.
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Weakening confidence, policy uncertainty, a continuation of FX market distortions, and a recent expansionary monetary stance, had increased pressure on the exchange rate.
Inflation stood at 175% in June. In his midterm budgetary review presentation, Finance Minister Mthuli Ncube suspended inflation figures publishing to allow agencies to collect fresh data using the new currency.