Inflation In Zimbabwe Rises By 10.5%

Zimbabwe experienced a sharp rise in inflation this January, with rates increasing by 14.6% in U.S. dollar terms and 10.5% in local currency terms compared to the previous year.

Independent economist Prosper Chitambara attributes the inflation spike to higher taxes and last year’s regional drought, which drove up food prices. The Finance Ministry’s recent tax measures, including a 0.5% levy on fast food and a 10% tax on sports betting winnings, came into effect this month, further impacting prices.

Despite launching a gold-backed currency in April 2023, Zimbabwe saw a sharp devaluation in September, forcing most transactions to rely on the U.S. dollar. Since its devaluation, the Zimbabwe Gold currency has continued to lose value, trading at 26.3 per dollar as of Tuesday, according to the central bank’s website