BY BUSINESS REPORTER

THE Zimbabwe National Statistics Agency (ZimStat) has reported an annual inflation rate of 540,16% as of last month due to the continued depreciation of the Zimbabwe dollar (ZWL).

The fall of the ZWL continues to drive the prices of consumer goods upwards as businesses seek to maintain the value of their wares, leaving the country in hyperinflationary mode.

“The month-on-month inflation rate in February was 13,52% gaining 11,29 percentage points on the January rate of 2,23%. The year-on-year inflation rate (annual percentage change) for the month of February as measured by the all items CPI stood at 540,16%,” said ZimStat on its Twitter account yesterday.

“The consumer price index for the month ending February 2020 stood at 640,16 compared to 563,90 in January 2020 and 100 in February 2019.”

This marks the first time ZimStat has been allowed to report the annual inflation rate following a government ban in August last year.

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However, the annual inflation rate of 540,16% trails the one reported by renowned American economist, Steve Hanke.

“The list of #Economic & #Social woes in #Zimbabwe is ever-increasing.

“While approximately half the #Population faces #Starvation due to a massive food shortage, Zim’s #Inflation, by my measure, is soaring at 1096%/year,” Hanke tweeted last Saturday.

According to the non-governmental organisation ACT Alliance, headquartered in Switzerland, the introduction of the Zimbabwe dollar has not relieved the situation either as the banning of the multi-currency regime has worsened the situation.

“The price of fuel continues to go up at a time when salaries are stagnant. Though the markets are functional, citizens are unable to procure goods and services to meet their food requirements,” ACT Alliance, in a recent report said.