Harare – Zimbabwe’s annual inflation rate rose 0.56 percentage points to 5.39 percent in the month of September, latest figures from the Zimbabwe National Statistics Agency show.

This was a marginal upturn from the August 2018 figure of 4.83 percent.

“The year on year inflation rate (annual percentage change) for the month of September 2018 as measured by the all items Consumer Price Index (CPI) stood at 5.39 percent, gaining 0.56 percentage points on the August 2018 rate of 4.83 percent,” said Zimstats.

This means that prices as measured by the all items CPI increased by an average of 5.39 percent between September 2017 and September 2018.

Month-on-month inflation also gained by 0.59 percentage points to 0.92 percent in line with analysts’ forecast that the rate is likely to slow around September and October 2018.

“The month on month inflation rate in September 2018 was 0.92 percent gaining 0.53 percentage points on the August 2018 rate of 0.39 percent.”

The year on year Food and Non Alcoholic beverages inflation prone to transitory shocks stood at 7.94 percent whilst the Non-food inflation rate was 4.20 percent.

This means that prices as measured by the all items CPI increased by an average rate of 0.92 percent from August 2018 to September 2018.

The month on month Food and Non Alcoholic Beverages inflation rate stood at 1.05 percent in September 2018, gaining 0.43 percentage points on the August 2018 rate of 0.62 percent.

The month on month non-food inflation rate stood at 0.85 percent, gaining 0.57 percentage points on the Au-gust 2018 rate of 0.28 percent.

The CPI for the month ending September 2018 stood at 101.97 compared to 101.04 in August 2018 and 96.75 in September 2017.

Zimbabwe currently uses a basket of currencies dominated by the United States dollar, as well as financial instruments — the bond notes, which are guaranteed by an international financial organisation.

Although the Reserve Bank of Zimbabwe (RBZ) has pegged and maintained the US dollar-bond note official rate at 1:1, cash shortages have resulted in a thriving black market for physical currency, both bond notes and United States dollar notes.

And it was largely assumed that the high demand for US dollars by both companies and individuals continues to push up the exchange rate.

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