Zimbabwe’s consumer inflation experienced a dramatic rise, reaching 37.2% month-on-month in October, as revealed by data released on Friday. This surge comes on the heels of a significant devaluation of the local currency, underscoring the economic difficulties facing the southern African nation.
In late September, the central bank allowed the gold-backed currency to plummet by over 40%, setting the exchange rate at 24.3902 to the U.S. dollar. Since then, the currency has continued to decline, dropping further to 27.6880 per dollar as of Friday, according to the central bank’s website.
In September, prior to the devaluation, consumer inflation was considerably lower at 5.8% month-on-month in local currency terms. The introduction of the ZiG, or Zimbabwe Gold, marks the country’s sixth attempt to establish a stable currency in the last 15 years, following a prolonged period of hyperinflation during Robert Mugabe’s rule. Launched in April, this new currency initiative aims to restore confidence in Zimbabwe’s financial system amidst ongoing economic challenges.
