By Business Reporter- Shops are failing to restock as a result of the rising inflation caused by the collapsing ZiG.

Friday the Zimbabwe National Statistics Agency (ZIMSTAT) reported a sharp increase in Zimbabwe’s inflation, with the month-on-month rate surging to 37.2% in October.

This steep rise signals mounting pressures on household purchasing power as the Zimbabwean currency, the ZiG, rapidly loses value.

The inflation surge comes on the heels of a significant currency devaluation in September, when the Reserve Bank of Zimbabwe (RBZ) adjusted the official ZiG exchange rate by 43%, hoping to align it more closely with the parallel market and curb demand for the US dollar.

However, the devaluation has intensified inflationary pressures, driving up the cost of goods and services across the board.

Presenting the data, ZIMSTAT Prices Statistics Manager Thomas Chikadaya explained: “The month-on-month inflation rate was 37.2 percent in October 2024, gaining 31.4 percentage points from the September 2024 rate of 5.8 percent.

This means that prices, as measured by the all-items ZWG CPI, increased by an average of 37.2 percent between September and October 2024.”
Before the devaluation, Zimbabwe’s consumer inflation stood at 5.8% month-on-month.

But as the RBZ’s move to stabilize the economy backfired, it has driven inflation to levels that have not been seen since the early 2000s when hyperinflation devastated the economy.

The latest devaluation is part of a long-standing economic crisis in Zimbabwe, stemming from years of hyperinflation, which peaked in 2008, leading the government to abandon the Zimbabwe dollar in favor of a multi-currency system.

Since then, attempts to reintroduce a local currency have been marred by devaluation, liquidity shortages, and eroding public confidence.

With inflation now threatening economic stability once again, Zimbabwe faces the daunting challenge of stabilizing its currency while managing rising prices that continue to strain the average citizen’s ability to afford basic goods.

The year-on-year inflation rate, as measured by the all-items USD Consumer Price Index (CPI), also rose, standing at 4.1% for October, signaling Zimbabwe’s continued battle with inflation as the currency crumbles under pressure.