(Bloomberg) -- Zimbabwe’s inflation rate jumped back into triple digits in May after the central bank effectively devalued the local currency by introducing a new interbank rate at which most commerce will take place.
Annual inflation quickened to 131.7% from 96.4% in April, ending a 10-month period in which the rate was below 100%. Costs rose 21% in the month, the fastest pace since July 2020. Food prices increased more than 150% from a year earlier.
More than four years after the ousting of the southern African nation’s former leader Robert Mugabe, who oversaw plunging economic output and hyperinflation, Zimbabwe is still struggling to get back on track.
The Reserve Bank of Zimbabwe introduced the new interbank rate at 276 per dollar on May 9. That was two days after President Emmerson Mnangagwa temporarily barred banks from lending and introduced other measures in a bid to halt the plunge in the Zimbabwe dollar on the black market, where it trades at more than 400 to the greenback. The interbank rate is now at 296.
©2022 Bloomberg L.P.
BNN Bloomberg Picks
Spotify's billion-dollar bet on podcasting has yet to pay off
'Hotdogs instead of steaks:' What your Canada Day BBQ will cost with hot inflation
In tight rental market, here's how to prepare for potential increase at renewal
27% of homeowners have a HELOC, half paying down principal: Poll
Beer made from recycled toilet water wins admirers in Singapore
Some Canadian companies expand benefits for U.S. workers after Roe v. Wade overturn