HARARE: Inflation in Zimbabwe hiked up in January in dollar and local currency terms, rising by 14.6 per cent and 10.5 per cent respectively in a year-onyear comparison, reported africanews. com.
According to independent economist Prosper Chitambara, the increase in inflation is due to higher taxes and a regional drought last year, which put pressure on food prices. The Finance Ministry notably introduced a 0.5 pc tax on fast food and a 10 pc tax on sports betting proceeds in its latest budget.
Zimbabwe launched a new goldbacked currency in April last year, but it was sharply devalued in September. Most local transactions still rely on foreign currencies like the US dollar. Since the devaluation, the Zimbabwe gold currency has fallen further.
