Zimbabwe’s money supply (M2) is surging at 421 percent per year, renowned American economic analyst Professor Steve Hanke says.
Hanke says that is why he measure Zimbabwe’s inflation today at 635 percent per year.
He adds that President Emmerson Dambudzo Mnangagwa is running the printing press like it’s 2008.
Latest data by the Zimbabwe Statistics Agency (ZimStat) shows a big jump in inflation for January 2025.
Zimbabwe Gold (ZiG) monthly inflation was 10.5% in January, up 6.8 percentage points from December 2024.
According to the data, the biggest price increases came from rentals and utilities, followed by food
USD annual inflation rose from 2.5% in December to 14.6%, driven mostly by food and non-alcoholic drinks prices.
According to Trade Economics, Zimbabwe’s monthly consumer inflation indeed climbed to 10.5% in January 2025, a sharp increase from a four-month low of 3.7% in the prior month.
The spike is largely attributed to the depreciation of the country’s gold-backed local currency, the ZIG.
