HARARE - Zimbabwe’s annual inflation rate raced to triple digits for the first time in five months after multiple devaluations of the local currency led prices to surge.
The blended consumer price index, which the southern African nation adopted as its inflation benchmark in February, rose 175.8% in June from 86.5% the previous month, Zimbabwe National Statistics Agency said at a briefing. Prices climbed 74.5% in the month, compared with 15.7% in May.
Inflation has been stoked by a sharp depreciation in the Zimbabwean dollar. The central bank has loosened controls on the foreign-exchange market since May.
It stopped short of free-floating the local currency in the battle to end volatility and close the gap between the official and black-market rate that’s distorted pricing and led to a spike in food costs.
The Zimbabwean dollar has depreciated 85% in the past two months on the official market.
The high cost of living and currency weakness are likely to become rallying points heading up to elections scheduled for August 23, which will see 11 candidates vie for the position of president including incumbent Emmerson Mnangagwa.
