Zimbabwe Inflation hits 31%

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Zimbabwe’s annual inflation rate has risen by 10. 16 percent from last month, with year on year inflation currently at 31.01 percent, according to the Zimbabwe National Statistics Agency (ZIMSTAT).

In a document released on Monday, ZIMSTAT said the annual inflation rate had risen from 20.85 percent in October with theConsumer Price Index (CPI) having surged due to rising food prices.

“The year on year food and non alcoholic beverages inflation prone to transitory shocks stood at 42.71 percent whilstthe non-food inflation rate was 25.40 percent,” read the statement.

According to the statistics agency,  overall month on month inflation rate declined by 7.24 percent with November at 9.20 percent compared to the October 2018 rateof 16.44 percent.

“The month on month food and non-alcoholic beverages inflation rate stood at 14.53 percent in November 2018, shedding 5.59 percentage points on theOctober 2018 rate of 20.12 percent.“The month on month non-food inflation rate stood at 6.50 percent, shedding 8.16percentage points on the October 2018 rate of 14.66 percent,” ZIMSTAT said.

The slowdown in the inflation rate may reflect a slight stabilisation in prices after the announcement of the Finance Ministry’s monetary policy in October caused major shocks to the Zimbabwe economy.

Despite sharp increases in prices and the clear devaluing of the Zimbabwe bond note and real time gross settlement accounts the  government has held to its mantra of pegging the local currency with the United States (US) dollar.

As reported by the Mail and Telegraph, doctors, nurse and teachers have held industrial action demanding payment in US dollars to offset high prices.

In a press conference on Monday, Finance Minister Mthuli Ncube said would be incapable of meeting that demand as the government did not earn foreign currency.