(MENAFN) According to data released by the National Statistics Agency (ZimStat) on Wednesday, Zimbabwe's annual inflation surged to a seven-month high of 55.3 percent in March, up from 47.6 percent recorded in the previous month. This upward trajectory in inflationary pressures coincides with persistent currency instability within the country.
Since the start of the year, the Zimbabwean dollar has been experiencing continued depreciation against the U.S. dollar. In January, the exchange rate stood at 10,000 Zimbabwean dollars per 1 U.S. dollar, but it has since worsened to 22,000 Zimbabwean dollars per 1 U.S. dollar in official trade.
The depreciation of the local currency is occurring against the backdrop of delays in the release of the 2024 monetary policy statement. This delay has led to heightened uncertainty in the market, with monetary authorities attributing the hold-up to the need for extensive consultations.
With anticipation building, market participants eagerly await the monetary policy statement, especially as President Emmerson Mnangagwa recently indicated government efforts towards implementing a structured currency system aimed at stabilizing the Zimbabwean dollar.
Meanwhile, ZimStat reported that the month-on-month inflation rate for March 2024 stood at 4.9 percent, a slight decrease from the February rate of 5.4 percent. This data underscores ongoing challenges in managing inflationary pressures and currency volatility within Zimbabwe's economic landscape.
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