Secret inflation figures adding more zeroes to Zim dollar

 

Three weeks ago Reserve Bank Governor Gideon Gono announced that ten zeros would be slashed from the rapidly weakening dollar. The move saw many old notes and coins re-entering the currency fray, causing confusion and chaos across the country.

 

But since then, the zeroes have already started reappearing as the political and humanitarian crisis continues to ravage the economy. At the same time, while speculation around the real’ inflation figures is rife, producers and retailers continue to increase their prices daily to keep up with the assumed inflation figure that is well beyond the official one.

 

The secrecy surrounding the figures is leading to more suffering for average Zimbabweans who are already dealing with a severe currency and food shortage. Many local businesses are also battling as their future projections are based on an inflation figure that is purely speculative.

 

Economic analyst John Robertson told Newsreel on Friday that it is likely another ten zeroes will need to be slashed off the currency because of the current fierce rate of exchange’. He said significant behavioral patterns’ are also driving up the inflation figure, explaining that most retailers are pushing up their prices to deal with expected rate changes rather than actual ones. Robertson added that such a situation means there is a self fulfilling economic prophecy’ as Zimbabweans are paying inflated prices, creating higher inflation changes.