Inflation – ‘economic HIV’

THE country's year-on-year inflation, surged to an new all-time high of 7 892,1% up from 6 592,7% in August the Central Statistical Office announced on last week on Wednesday.

CSO said the month on month inflation for September gained 1 389,3 percentage points on the August rate of 6 592,8%.

The CSO said the figure was driven by non-food items, while food inflation was marginally lower. Water, housing, electricity, transport and health costs were behind the latest price rises, said CSO.

Moves by the government to liberalise prices of most basic commodities, which it had frozen in July also caused the increase, according to analysts.

“Year-on-year food and non-alcoholic beverages inflation stood at 7 759%, 149,1 percentage points down from the August 2007 figure of 7 908,1%, while non-food inflation was 8,096.7% from the August figure of 5 983,9%,” the CSO said.

“The month on month rate of inflation rose by 38%, triggered by new economic measures which were put in place to mitigate against the widespread food shortages which had crippled the country,” said the CSO.

In his mid-term monetary policy statement, Gono described Zimbabwe’s inflation as an ‘economic HIV’ which needed a concerted approach to arrest it. He said the government had decided to fight it head on in an effort to tame it. He did not give any projections to the country’s inflation decline, something he has always done in his policy statements.

Post published in: Economy

Leave a Reply

Your email address will not be published. Required fields are marked *