Zim inflation hits 7 251%

HARARE – Zimbabwe’s annual inflation accelerated to 7 251,1 per cent in June, to set a new world record and highlight the Harare government’s inability to break a vicious inflation cycle that has left consumers impoverished and the economy in deep crisis.

According to a Reserve Bank of Zimbabwe (RBZ) circular to local financial institutions and which was shown to ZimOnline on Tuesday, year-on-year inflation was pegged at 4 350 per cent in May before shooting up by more than 2 900 percentage points to 7 251,1 in June. Month-on-month inflation was 55,4 per cent in May and 86,2 per cent in June, according to the circular released on Monday this week.President Robert Mugabe’s government has since April withheld inflation figures, in a move observers said was meant to shield the administration from embarrassment for its failure to stem runaway inflation, which has come to symbolise the country’s unprecedented economic meltdown.But RBZ governor Gideon Gono was forced to literally let the cat out of the bag by disclosing the latest inflation data in order to enable financial institutions and listed companies to report interim and annual financial statements.Local financial institutions and listed companies are required to use the Consumer Price Index in measuring performance and earnings in order to comply with the International Accounting Standards (IAS) and International Financial Reporting Standards.Gono wrote in the circular: “Financial statements for publication by listed entities and in respect of all banking institutions in terms of supervisory best practice, should comply with International Accounting Standards (IAS)/ International Financial Reporting Standards.ZimOnlineMonth-on-month inflation was 55,4 per cent in May and 86,2 per cent in June, according to the circular released on Monday this week.President Robert Mugabe’s government has since April withheld inflation figures, in a move observers said was meant to shield the administration from embarrassment for its failure to stem runaway inflation, which has come to symbolise the country’s unprecedented economic meltdown.But RBZ governor Gideon Gono was forced to literally let the cat out of the bag by disclosing the latest inflation data in order to enable financial institutions and listed companies to report interim and annual financial statements.Local financial institutions and listed companies are required to use the Consumer Price Index in measuring performance and earnings in order to comply with the International Accounting Standards (IAS) and International Financial Reporting Standards.Gono wrote in the circular: “Financial statements for publication by listed entities and in respect of all banking institutions in terms of supervisory best practice, should comply with International Accounting Standards (IAS)/ International Financial Reporting Standards. ZimOnline