Inflation rises to 785.55%

Zimbabwe’s inflation rose to 785.55% on an annualized basis in May, from 765.57% the previous month, the Zimbabwe Statistics Agency said today, laying bare the challenge of a weakening local currency and rising pieces.

Business Reporter

Month-on-month, inflation dropped slightly to 15.13% from 17.64% during the same period, Zimstat said.

Since it was introduced as the sole legal tender in June last year, the Zimbabwe dollar has lost around 90% of its value against the United States dollar, leading to fears that it could follow a similar path to its predecessor, which the country abandoned in February 2009 after it was ravaged by hyperinflation.

Zimbabweans are having to contend with rising prices of basic commodities on a daily basis, while purchasing power continues to fall as wages fail to keep pace.