Zimbabwe’s annualised inflation rate rose 77.81 percentage points in June to 175.66 percent as economic headwinds buffet the struggling southern African economy facing acute shortages foreign currency to import fuel, electricity and raw materials.
Official data published by the Zimbabwe National Statistics Agency (ZIMSTAT) on Monday showed that the consumer price index nearly doubled between May and June 2019, rising from the 97.85 percent recorded in the former to 175.66 last month.
The sharp increase was on the back of sharp rises in the cost of basic commodities during the past month, with prices of some commodities edging up by as much as 200 percent in June, according to ZIMSTAT.
The dramatic rise in the cost of living comes as Zimbabwe is battling a serious shortage of foreign currency, which has triggered scarcity of fuel and has affected the ability of local firms to import raw materials for their factories.
The foreign currency shortages have also worsened a power crisis that has seen most parts of the country experiencing rolling electricity blackouts lasting as much as 16 hours.
The non-availability of power has added to the cost of goods as most companies have resorted to the use of diesel generators for their production.
JN/APA