Market News
Zimbabwe inflation surges after currency devaluation - REUTERS
JOHANNESBURG, Oct 25 (Reuters) – Zimbabwe’s consumer inflation surged to 37.2% month on month in October in local currency terms, data showed on Friday, after a sharp devaluation in the southern African country’s currency.
Zimbabwe’s central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank’s website.
In September, before the devaluation, consumer inflation was at 5.8% month on month in local currency terms.
The ZiG, which stands for Zimbabwe Gold, is Zimbabwe’s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under leader Robert Mugabe. It was launched in April.
(Reporting by Tannur Anders; Additional reporting by Nyasha Chingono; Editing by Alexander Winning).
