Zim inflation rises to 31pc

HARARE - Zimbabwe's year on year inflation rate for the month of November stood at 31,01 percent, gaining 10,16 percentage points on the October rate of 20,85 percent following a surge in prices of goods and services, the Zimbabwe National Statistical Agency (Zimstat) said yesterday.

This was after government imposed a two percent tax on electronic transactions in October this year, triggering a shopping frenzy and a general hike in prices.

Market experts contends that the rising inflation has cast doubt on President Emmerson Mnangagwa’s plans to revive the ailing economy.

Zimstat said month on month inflation rate in November was 9,20 percent shedding 7,24 percentage points on the October rate of 16,44 percent. 

“This means that prices as measured by the all items CPI increased by an average rate of the 9,20 percent from October 2018 to November 2018,” said Zimstat.

Month on month food and non-alcoholic beverages inflation rate stood at 14,53 percent in November 2018, shedding 5,59 percentage points on the October 2018 rate of 20,12 percent.

“The month on month non-food inflation rate stood at 6,50 percent, shedding 8,16 percentage points on the October 2018 rate of 14,66 percent,” said Zimstat.

Zimbabwe adopted the US dollar in February 2009 after dumping its hyperinflation-wrecked currency, which saw inflation fall to single digits.

Some business in Zimbabwe are now demanding US dollars only and have raised prices by more than three times for the majority who pay using bond notes.

Prices of basic goods are rising when the value of the bond note and electronic dollars collapsed on the parallel market, leading to panic buying by consumers for selected products.

The year on year food and non-alcoholic beverages inflation prone to transitory shocks stood at 42,71 percent whilst the non-food inflation rate was 25,40 percent.

The latest rise in inflation comes at a time when Finance minister Mthuli Ncube attributed the increase in prices to fiscal imbalances that have fuelled money supply.

“There has been an upsurge in inflationary pressures during the third quarter of the year. This has been driven mainly by food prices which were responding to rising parallel exchange premiums, panic buying and artificial shortages,” he said.

“In the outlook, monthly inflation is expected to stabilise mainly due to fiscal consolidation measures being pursued by government, increased supply of goods following the scraping of Statutory Instrument 122, and stability in the foreign exchange market,” he added.

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Comments (1)

Daily News matanga Scare tactics dzenyu. We demand better financial reporting from NOW on. It seems you turn a blind eye to some economic factors but focus ONLY those that can finger Gov. The true picture is that these price increase are caused by Greed. IF GENUINE hyper inflation takes place, half of all business in Zim MUST have collapsed by now, why not investigate why, its not so and give us the bigger picture.

Nyandoro - 21 December 2018

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