Zimbabwe’s annual inflation soared to 837.53% in July from 737.26% in June, the country’s statistical agency Zimstat said on Saturday, 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 July as measured by all items #CPI was 837.53%,” the Zimbabwe National Statistics Agency tweeted. “The #CPI for the month ending July 2020 stood at 1,958.72 compared to 1,445.21 in June 2020 and 208.92 in July 2019.”
Month on month inflation rate in July was 35.53% gaining 3.87 percentage points on the June 2020 rate of 31.66%. Price determination in the economy by businesses is being established on the basis of expectations about the depreciation of the exchange rate and prices that will exist in the future.
The Zimbabwe dollar depreciated by 2.54% to the US dollar at the latest forex auction held in Harare this week. Experts have been lobbying the apex bank to put a lid on money supply in order to arrest inflation. According to African Development Bank, the country’s inflation will average 217% this year amplified by the Covid-19 induced shocks.
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.