Zim monthly inflation more than doubles since September

accreditation
(iStock)
(iStock)

Despite government forecasts that Zimbabwe's inflation was on its way down, month-on-month inflation for October came out at 38.75%, more than double its September level of 17.72%, according to figures released Friday by Zimstats.

The southern African government has set a target for inflation to reach below 10% by year end.

Inflationary pressures in Zimbabwe are mainly driven by depreciating exchange rate of the local currency, further fuelled by adverse market expectations and increases in money supply.

Month-on-month inflation started the year at 10.8% in January 2019, slowed down to 1.7% in February, before picking up in March and April. In June 2019, it hit a peak of 39.3%, making October's outcome the second highest in 2019. 

Due to high exposure of tradeable goods to exchange rate movements, food and non-alcoholic beverages were the major drivers of inflation. 

The month-on-month food and non-alcoholic beverages inflation rate stood at 48.35% in October 2019, gaining 28.80 percentage points on the September 2019 rate of 19.55%.

The month-on-month non-food inflation rate stood at 32.90%, gaining 16.27 percentage points on the September 2019 rate of 16.63%.

Zimbabwe previously outlawed the publication of annual inflation figures, but the consumer price index provided by Zimstats makes it possible to calculate inflation.

For October, annual inflation stood at 440.2%, up from 353% in September.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
15.72
-0.5%
Rand - Pound
19.73
-0.5%
Rand - Euro
16.79
+0.1%
Rand - Aus dollar
11.12
+0.1%
Rand - Yen
0.12
-0.0%
Gold
1,849.35
-0.9%
Silver
21.91
-1.0%
Palladium
2,001.00
-0.4%
Platinum
950.00
-0.7%
Brent Crude
113.56
+0.1%
Top 40
61,176
0.0%
All Share
67,585
-0.2%
Resource 10
74,448
+0.1%
Industrial 25
72,681
+1.3%
Financial 15
15,434
-2.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot