Zimbabwe’s inflation is back above 100% after currency plunge

Annual inflation quickened to 131.7% from 96.4% in April, ending a 10-month period in which the rate was below 100%.
Image: Zinyange Auntony/AFP/Getty Images

Zimbabwe’s inflation rate jumped back into triple digits in May after the central bank effectively devalued the local currency by introducing a new interbank rate at which most commerce will take place.

Annual inflation quickened to 131.7% from 96.4% in April, ending a 10-month period in which the rate was below 100%. Costs rose 21% in the month, the fastest pace since July 2020. Food prices increased more than 150% from a year earlier.

More than four years after the ousting of the southern African nation’s former leader Robert Mugabe, who oversaw plunging economic output and hyperinflation, Zimbabwe is still struggling to get back on track.

The Reserve Bank of Zimbabwe introduced the new interbank rate at 276 per dollar on May 9. That was two days after President Emmerson Mnangagwa temporarily barred banks from lending and introduced other measures in a bid to halt the plunge in the Zimbabwe dollar on the black market, where it trades at more than 400 to the greenback. The interbank rate is now at 296.

© 2022 Bloomberg

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Judging by what the Ruble is doing in Russia, maybe Zimbabwe should consider invading RSA ….. ?

Of course we will retaliate severely and decisively with our one remaining Flossie.

….. and once the Oliphant tank has been serviced it will be transported north from Tempe in a public/ private partnership lead by Fikile Mbalula. In exchange for the R350 Big Ones we gave Cuba they are sending us their 5 remaining AP shells for the tank.

someone just needs to alert the spietKops at Colesburg. Once the tank reaches the Gariep river they should stop it and turn it 180 degrees toward Pretoria.

End of comments.

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