Zimbabwe inflation rates jumps to 785.55%
THE annual inflation rate in Zimbabwe jumped to 785.55% in May from 765.57% in April, according to the Zimbabwe National Statistics Agency (ZimStat).
The month-on-month inflation rate in May was 15.13% from April’s 17.64%, the agency said in a statement posted on its official Twitter account.
The ZimStat further said the consumer price index for the month ending May 2020 stood at 1,097.65 compared to 953.36 in April 2020 and 123.95 in May 2019
The surging inflation, which has gone untamed for long, is set to put pressure on employers who will have to adjust salaries to catch up with the rising cost of living.
Already, civil servants are pushing for a salary raise while workers at quasi-government institutions such as the Zimbabwe Revenue Authority (ZIMRA) have already notified their employer of impending labour action if salaries are not pegged to the US dollar.
While most civil servants take home less than $3,000 per month, the average family needs more than twice that – $7,100 – to survive every month.
On the parallel market, the exchange rate has shot to between 75 and 90 ZWL$ for US$1.
Meanwhile, the Reserve Bank of Zimbabwe maintains a tight grip on the interbank foreign currency exchange rate, which they pegged at 1:25 in March on the onset of the lockdown. –