ZIMBABWE’S year-on-year inflation rate for the month of June 2019 rose sharply by 77,75 percentage points to 175,66% from 97,85% in May 2019, driven by increases in the price of basic goods, the statistics agency reported yesterday.
“The month-on-month food and non-alcoholic beverages inflation rate stood at 55,07% in June 2019, gaining 37,44 percentage points on the May 2019 rate of 17,63%. The month-on-month non-food inflation rate stood at 31,23%, gaining 21,11 percentage points on the May 2019 rate of 10,12%” the Zimbabwe National Statistics Agency (Zimstat) said.
The month-on-month inflation rate in June 2019 was 39,26%, gaining 26,72 percentage points on the May 2019 rate of 12,54%.
The annual inflation rate has been on the rise since the beginning of the year. It opened the year at 56,9 % in January, before edging to 59,4% the following month.
Finance minister Mthuli Ncube has maintained that the inflation rate will stabilise by October.
In 2008, Zimbabwe’s inflation peaked at 500 billion percent, forcing government to abandon the local currency for a basket of currencies anchored by the United States dollar the next year.
Last month, authorities in the southern African economy scrapped use of the multi-currency regime and re-introduced the Zimdollar, but the market continues to be sceptical about the currency.
The Zimdollar has lost about 40% of its value to now trade at US$1:ZWL$8, 95 since June.