Business

Zim year-on-year inflation gallops past 1000 mark

Zimbabwe’s inflation is now at 1027%/ year, this is according to renowned American economic analyst Professor Steve Hanke’s world currency dashboard.

Posting on his X handle Prof Hanke said this is the world’s highest inflation rate.

He accused President Emmerson Dambudzo Mnangagwa of being arrogant, corrupt and incompetent.

The year-on-year inflation rate (annual percentage change) is measured by the all-items Consumer Price Index (CPI).

The strong link between fiscal deficit and money growth in Zimbabwe, especially since 1997 suggests that over-expansionary fiscal policy is often at the heart of hyperinflationary trend in the country.

Thus high fiscal deficits produce rapid money growth, which results in high rates of hyperinflation.

Zwnews

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