Zimbabwe’s inflation doubles in two months to 191 pct

HARARE

Zimbabwe’s annual inflation rate quickened to 191.6 percent in June, more than doubling the consumer price increases of two months ago, official statistics showed on June 25.

Inflation which was at 96.4 percent in April, crept up to nearly 200 percent as prices of cooking oil and bread are leaping higher as a result of Russia’s invasion of Ukraine.

Rising prices revive memories of hyperinflation seen more than a decade ago when inflation spiralled so far out of control that the central bank in 2008 issued a 100-trillion-dollar note, which has now become a collectors’ item.

The government then ditched the local currency and adopted the U.S. dollar and the South African rand as legal tender.

But in 2019 the government reintroduced the Zimbabwean dollar, which has rapidly been declining in value.

Meanwhile, the International Monetary Fund (IMF) has approved the release of $1 billion in funding for Ecuador following two reviews of its loan program with the country.

In September 2020, Ecuador obtained a 27-month loan from the IMF for $6.5 billion, of which $4.8 billion has been delivered so far.

The new $1 billion disbursement was announced on June 25.

The arrangement is meant to bolster Ecuador’s economic recovery from the COVID-19 pandemic, restore fiscal sustainability and reduce public debt.

“The Ecuadorian authorities plan to use the disbursement for budget support,” a statement from the IMF said.

In its statement, the IMF also highlighted Ecuador’s expansion of social assistance programs.

“Social assistance to low-income families continues to be expanded. Eight in 10 low-income families now receive government support, up from three in 10 only two years ago,” said Antoinette Sayeh, IMF deputy managing director.