The latest statistics by ZIMSTAT show that the month on month inflation for October was an astounding 38.75% up from a respectable 17.72% in September.
This means the rate at which the price of goods and services rose in the Month of October accelerated when compared to September. The rate of price increases increased by 21.03% i.e. the rate of price increases more than doubled when compared to level of price increases in September.
Consumer Price Index for October 2019 measured at 402,92% compared to 290,39% in September 2019. Month On Month Inflation for October 2019 was 38,75% from 17,72% in September 2019! Stats Courtesy of ZimStatInformation by Zimbollar.
The rate is likely to slow in November
The rate is likely to come down in November. This spike was expected given the way inflation is measured. October and the last weeks of September (not included in that month’s figure) were wild in terms of exchange rate fluctuations and price increases. We saw the price go up by 300% in one week!
However, we have started to see a slowdown in the rate at which prices are going up in the months of November and the final weeks of October. We have already lived through the wild weeks, these figures are historical.
Given the serious erosion of spending power, prices cannot continue to go up. However, the new cash can unsettle the market as we are beginning to see a spike in the rate which had settled around the $20ZWL:1 USD mark.