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Zimbabwe inflation surges after currency devaluation

Published 10/25/2024, 04:58 AM
Updated 10/25/2024, 05:02 AM
© Reuters. A general view of the Reserve Bank of Zimbabwe (RBZ)'s head office in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo/ File Photo

JOHANNESBURG (Reuters) - Zimbabwe's consumer inflation surged to 37.2% month on month in October in local currency terms, data showed on Friday, after a sharp devaluation in the southern African country's currency.

Zimbabwe's central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank's website.

© Reuters. A general view of the Reserve Bank of Zimbabwe (RBZ)'s head office in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo/ File Photo

In September, before the devaluation, consumer inflation was at 5.8% month on month in local currency terms.

The ZiG, which stands for Zimbabwe Gold, is Zimbabwe's sixth attempt at a stable currency in 15 years after a bout of hyperinflation under leader Robert Mugabe. It was launched in April.

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