"Mnangagwa Leading Zimbabwe To Ruins", Hanke Claims Inflation Is Now 1 298%
Professor of applied economics at the Johns Hopkins University, Steve Hanke, says Zimbabwe’s year-on-year inflation has reached 1 298 percent as the Government refuses to abandon the Zimbabwe dollar.
The local currency, which was trading at US$1: ZWL$2 577 on 30 May 2023, had moved to US$1: ZWL$5 978 on 13 June at the Reserve Bank of Zimbabwe (RBZ) controlled forex auction.
Posting on Twitter, Hanke said President Emmerson Mnangagwa’s Government is leading Zimbabwe to “ruins” by insisting on the use of the valueless Zimbabwe dollar. He wrote:
#Zimbabwe’s Pres. Mnangagwa is giving a masterclass in economic stupidity and corruption.
With annual inflation at a whopping 1 298%/yr, he continues to try to push Zimbabweans to use the Zim dollar. He is leading Zim to ruins.
However, Hanke’s measurement of Zimbabwe’s rate of inflation is problematic as he seemingly only considers prices in Zimbabwe dollars, yet around 30% of transactions are conducted in the local currency, with the US dollar now dominant.
The Zimbabwe National Statistics Agency (ZIMSTAT), which measures inflation in the country, considers prices in both ZWL and USD to come up with a blended rate of inflation.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
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