ZIMBABWE’S year-on-year inflation rate for October surged to 14 840, 6% as the economic crisis continues to worsen despite efforts to control prices
of basic goods.
This represents a 6 848,5% increase from September’s 7 982,1%. The inflation rate was 1 070% in October last year.
According to Central Statistical Office figures leaked to the Zimbabwe Independent this week, month-on-month inflation, which had temporarily eased over the past two months because of a controversial price blitz in June, jumped 96,9 percentage points from 38,7% in September to 135,6% last month.
Figures obtained yesterday showed that annual broad money (M3) growth continued in August, firming to 17 806,8% from 17 073,1% in July.
The growth in broad money was largely driven by a 25 785,7% increase in credit to the private sector, while credit to government and public enterprises grew by 14 504,2% and 6 418,9% respectively.
Zimbabwe Allied Banking Group economist David Mupamhadzi said the inflation rate reflected a failed economy.
“We are now feeling those effects of the printing of money,” Mupamhadzi said, adding that “the rise will fuel demands for higher wages from workers battling to catch up with rising prices of goods and services”.
Economic consultant John Robertson said there was need for monetary restraint and a change in economic policy to rein in inflation.
“The authorities have to appreciate that we are in a crisis and do something right now,” said Robertson.
He projected higher inflation in the short-term, saying prospects of a decline were almost impossible.