By Alois Vinga
ZIMBABWE’s year on year inflation has reached 785.55 % indicating deep problems embedded within the country’s economic fundamentals.
According to a Tuesday update by the Zimbabwe National Statistics Agency (ZIMSTAT), the inflation rates jumped from 765.57% recorded in April 2020. The current stats are covering the period of May 2020.
The statistics agency noted that 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 great decline of the country’s currency has sustained a downward trajectory since late 2018 when Finance Minister, Mthuli Ncube began the process of initiating economic reforms which were aimed at stabilising the economy.
However, the reform agenda has resulted in the waning of the local currency amid indications that the productivity has remained at its least ebb.
The Southern Africa nation’s import bill continues to grow amid concerns that the nation is importing almost everything consumed by the citizenry.
This month, the statistics agency reported that a family of five now requires $7 425 per month to manage monthly expenses.
The latest data shows that the Food Poverty Line (FPL) for one person in April 2020 was $596.96 while that of an average household of five persons was $2,984.78.
This is despite the fact that the government recently approved a minimum wage of $2 500 across the board.