eBusiness Weekly
Tawanda Musarurwa
HARARE – Zimbabwe’s annual rate of inflation increased by 10,16 percentage points to 31,01 percent in the month of November from 20.85 percent in October as speculative price increases took their toll on the economy.
The year on year inflation rate (annual percentage change) for the month of November 2018 as measured by the all items Consumer Price Index (CPI) stood at 31.01 percent, gaining 10,16 percentage points on the October 2018 rate of 20,85 percent, highlighted latest figures from the Zimbabwe National Statistical Agency (ZimStats).
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.
And on a monthly basis, prices increased by 9,2 percent last month compared to 16,44 percent in October.
The 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.
Speculative and profiteering tendencies in the past few months have continued to exert pressures on the country’s inflation.
Other observers have attributed the quickening inflation to the continuance of the parallel currency market.
Zimbabwe uses a basket of currencies dominated by the US dollar, as well as financial instruments — the bond notes, which are guaranteed by an international financial organisation.
Although the Reserve Bank of Zimbabwe (RBZ) has pegged and maintained the US dollar-bond note official rate at 1:1, cash shortages have resulted in a thriving black market for physical currency, both bond notes and United States dollar notes.
And it is largely expected that the high demand for US dollars by both companies and individuals continues to push up the exchange rate.
RBZ governor Dr John Mangudya has however said that the current rise in inflation is short-term is expected to correct going forward.
