Zim’s year-on-year inflation at 540pc

BH24 Reporter

Zimbabwe’s annual rate of inflation stood at 540,16 percent for the month of February, according to latest figures by the Zimbabwe National Statistical Agency (ZimStats).

The numbers also show that on a month-on-month basis, local prices of goods and services rose by 13,52 percent during the same period compared to 2,23 percent during the previous month.

The Reserve Bank of Zimbabwe (RBZ) is on record saying that Zimbabwe’s year-on-year inflation rate to fall to 50 percent by the close of this year.

Observers however say the latest significant in the year-on-year inflation rate was driven by prices hikes as businesses continue to react to the depreciating local currency following currency reforms last year, which saw the country’s fiscal and monetary authorities moved to end the long-standing multicurrency system.

Annual inflation calculation had been suspended by Treasury last year after the currency conversion.

It resumed last month.

Previous to the February 2020 year-on-year inflation, Zimbabwe’s annual rate of inflation was last calculated in June 2019, at 175,6 percent.