Connect with us

Hi, what are you looking for?


Zim inflation rises in June

HARARE, Jul 20 – Prices in Zimbabwe rose in June, ending four months of deflation that followed the scrapping of the local currency, the government said Monday.

After a decade of hyperinflation that soared into multiples of billions, Zimbabwe\’s government abandoned its currency in January.

The government now calculates inflation based on US dollar prices, which have been falling all year.

In June, the monthly inflation rate registered at 0.6 percent, against -1.0 percent in May.

Food prices, however, remained deflationary, with food and non-alcoholic beverages at -1.26 percent, against -0.84 percent in May, the Central Statistics Office said.

Non-food inflation was at 1.45 percent, compared with -1.05 percent for May.

Since trading in foreign currency was allowed, Zimbabwe\’s once-deserted shops are again fully stocked with food.

But even with food prices falling, few people can afford to buy food in a country where the unemployment rate is estimated at 94 percent.

Once a regional breadbasket, Zimbabwe\’s economy has shrunk more than 40 percent over the past three years.

Advertisement. Scroll to continue reading.

The unity government formed in February between long-ruling President Robert Mugabe and his one-time rival Prime Minister Morgan Tsvangirai is trying to convince donors to give 8.5 billion dollars to revive the economy and the civil service.

Last week Finance Minister Tendai Biti predicted that the country\’s economy will grow by 3.7 percent this year and ruled out a return of the Zimbabwe dollar.


Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...