Zimbabwe inflation shoots up to 20.85 percent

Zimbabwe’s inflation rate rose to 20.85 percent in October, the highest since 2008 from 5.39 percent in September as the rate of prices increases quickened, rekindling memories of hyperinflation.

On a monthly basis, consumer prices increased 16.44 percent from 0.92 percent in the previous month, the Zimbabwe National Statistics Agency said on Tuesday.

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 World Bank figures.

It eventually abandoned its Zimbabwe dollar currency and adopted mainly the US 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.- The Source

(171 VIEWS)