Zimbabwe’s annual inflation soared to 765.57% in April from 676.39% in March, the country’s statistical agency Zimstat said Friday. Inflation is one of the key measures of the financial wellbeing of an economy.
“The year on year Inflation rate (annual percentage change) for the month of April as measured by the all items Consumer Price index (CPI) stood at 765.57%. The CPI for the month ending April 2020 stood at 953.36 compared to 810.40 in March 2020 and 110.14 in April 2019,” the Zimbabwe National Statistics Agency tweeted.
However, the month on month inflation rate in April was 17.64% shedding 8.95 percentage points on the March 2020 rate of 26.59%. Inflation is projected to end the year at 319% by IMF while broad money as a percentage of GDP forecast at 15%.
The gap between the interbank rate and the parallel rates continues to widen. Resultantly, real incomes have been eroded. The galloping inflation affects what consumers can buy with their money. Economist Tapiwa Mangwiro said inflation continue to take its cue from the exchange rate.
“With the introduction of a dual currency (US & ZWL) retailers will charge in ZWL at a premium in order to recover the exchange rate loss in look for the real dollar on the alternative market,” he said.
Following the introduction of the new currency – the Zimbabwe dollar – the exchange rate has deteriorated from 2.5 Zimbabwe dollars per US dollar in February 2019 to 70 Zimbabwe dollars per US dollar this month.
The US dollar had been the national currency since 2009 when the southern African nation removed its own worthless currency when hyperinflation reached 500 billion percent.