Zim inflation shoots to 300%.

In a rather sad development the inflation rate for the country has shared up to 300%. This was confirmed by the IMF after a two week survey of the country’s economic situation. According to them the inflation rate ballooned to 300% in the month of August, casting fears in the future spike that is looking.

The US dollar is now pegged to be at 16.5 rtgs dollars, a far cry from the rate which may people are hoping for. The spike in the inflation rate comes in the wake of currency reforms introduced by the finance minister in February. The so called austerity measures are yet to tied any results as hardships continue.

There s growing speculation that the country is regressing back to the status quo of ten years ago, when the economy crumbled to pieces and inflation rose to 500 billion percent. Savings had then been wiped out. At that point, the country had abandoned the use of its own currency and adopted the US dollar.

The IMF concluded that the country is experiencing economic difficulties exarcebated by severe weather shocks. Indeed the 2018/2019 agricultural season was dry with little rainfall being experienced in the country. Other factors such as poor electricity generation and the cyclone Idai that ravaged parts of the country have also had a bearing on the hardships being experienced.

The president has been preaching the mantra that Zimbabwe is now open for business but that is yet to become fruitful as investors are not really warming up to the assurance. Zimbabwe is set to brace for tougher times ahead if the inflation rate continues to soar to such levels.