Zimbabwean annual inflation surged to 55.3% this month, marking a significant increase from February’s rate of 47.6%, as reported by Bloomberg. The announcement, made by the Zimbabwe National Statistics Agency (ZIMSTAT) on Wednesday, March 27, underscores concerns over the country’s escalating inflation, which is at its highest level in seven months.
This development follows closely on the heels of a pledge by the Minister of Finance, Economic Development, and Investment Promotion, Mthuli Ncube, to tackle rising prices driven by the country’s plummeting currency. Prices increased by 4.9% this month, a slight decline from February’s 5.4%.
ZIMSTAT attributes the inflationary surge to the rising costs of food and utilities, including housing. Minister Ncube acknowledged the price instability, particularly driven by currency fluctuations, affirming government’s commitment to intervene.
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The Zimbabwean dollar has seen a steady depreciation against the US dollar throughout the year, weakening by 72% and ranking as the world’s second-worst-performing currency, following the Lebanese pound.
Minister Ncube hinted at forthcoming measures through a monetary policy statement from the central bank, aimed at restoring stability. Despite efforts to stabilize the Zimbabwean dollar since its reintroduction in 2019, challenges persist, prompting discussions about potential currency reforms.
President Emmerson Mnangagwa mentioned the possibility of introducing a “structured currency,” although specifics were not provided. Despite these efforts, confidence in the local currency remains low, with economic actors continuing to favor the US dollar.
