Zimbabwe’s annualised inflation rate rose by 20 percentage points to 785.55 percent in May as the economy continues to totter along on the back of an unstable currency and an acute shortage of fuel, official data showed on Tuesday.
According to the Zimbabwe National Statistics Agency, year-on-year inflation rose from 765.57 percent in May 2019 to 785.55 percent last month.
It attributed the increase to rising prices of basic goods and a weakening currency.
The free-falling Zimbabwe dollar has depreciated by more than 60 percent on a thriving black market since the beginning of March, piling pressure on prices of goods and services.
Despite efforts by the central bank to keep the official exchange rate at Z$25 to the United States dollar, the American greenback is trading at up to Z$90 on the black market.
Due to challenges in accessing foreign currency on the official market, most traders rely on the black market for money to import stock and pass on the exchange rate premium to the end user.
The hyperinflationary conditions have triggered fears among older Zimbabweans of the heady days of rapid economic collapse experienced between 2007 and early 2009 when prices of commodities would increase by the minute.
The economic crisis is worsened by the shortage of fuel, which is now only available in US dollars at service stations.
JN/APA