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Inflation rate shoots to 20,85%

Zimbabwe’s inflation rate shot up to 20,85% in October, the highest since 2008 from 5,39% in September as the rate of price increases quickened, rekindling memories of hyperinflation.

By Business Reporter

On a monthly basis, consumer prices increased 16,44% from 0,92% in the previous month, the Zimbabwe National Statistics Agency said on yesterday.

The southern African country grappled with a devastating period of hyperinflation that left its currency worthless and rendered savings and pensions useless in the decade to 2008 when it reached 500 billion percent, according to the International Monetary Fund data.

It eventually abandoned its Zimbabwe dollar currency and adopted mainly the United States dollar and regional currencies.

The latest round of price increases was triggered when the central bank compelled banks to separate foreign currency-funded accounts from local accounts-funded through transfers, leading to the value of the surrogate bond note currency and electronic dollars collapsing on the parallel market.

Source: Newsday

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