HomePoliticsInflation breaches 620% mark

Inflation breaches 620% mark

Staff Writers

ZIMBABWE’S inflation this week broke the 620% barrier surging from 598% to 622,8%. Effectively inflation has gained 24,1 percentage points in the last 30 days.

ce=”Verdana, Arial, Helvetica, sans-serif”>The latest development comes hard on the heels of the firming of the US dollar on the auction floors yesterday.

The inflation figure for the month of January released yesterday suggests that the euphoria surrounding the “drop” for December was nothing more than a statistical aberration, more so given the fact that the impact of monetary or fiscal policy on an economy is never instant but gradual, something which the governor of the Reserve Bank concurred with this week.

Year-on–year inflation increased by 24,1 percentage points to 622,8% which is a new record high.

Food inflation gained 30,1 percentage points on the December 2003 figure to 665,7% while non-food or core inflation gained 20,9 percentage points to 599,1%.

Yesterday, the greenback firmed against the Zimbabwe dollar, closing the day on US$1 to $3 775,63, up from $3 581.

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