Zimbabwe’s annual rate of inflation, the highest in the world, continued in May to slow for the fourth month in a row as it dropped to less than 450%, but economists said on Sunday it was inevitable that the rate would accelerate again soon.
The official Central Statistical Office said year-on-year inflation in the fifth month of the year was 448%, 54% lower than the 505 recorded in April. However, month-on-month inflation rose from 4,8% in April to 6% in May, according to the figures, also after registering a decline since early this year.
Zimbabwe is in severe economic crisis, characterised by the world’s fastest shrinking gross domestic product of 30% in the last five years, and scheduled to sink more than 9% this year alone.
Reckless economic decisions, corruption, violent repression and the destruction of its formerly abundant agricultural industry under 80-year-old President Robert Mugabe are widely blamed for the collapse of what until five years ago was one of Africa’s most robust economies.
Inflation hit a record 623% in January this year, but in the last four months has slowed by 175%. The government says that the drop in the rate is a result of rigorous new monetary policies and devaluation of the local currency that has caused a sharp increase in foreign currency inflows. – Sapa-DPA