Zimbabwe's Inflation Surge

JOHANNESBURG (Reuters) – Zimbabwe's consumer inflation surged to 37.2% month on month in October in local currency terms, following a sharp devaluation of the national currency.

In late September, Zimbabwe's central bank permitted the local gold-backed currency to drop over 40%, leading to a rate of 24.3902 to the U.S. dollar. As of Friday, the currency has decreased further to 27.6880 to the dollar, as reported by the central bank’s website.

In September, prior to the devaluation, the consumer inflation rate was 5.8% month on month in local currency.

The ZiG (Zimbabwe Gold) represents Zimbabwe's sixth endeavor to establish a stable currency in 15 years, following a period of hyperinflation during Robert Mugabe's leadership. The currency was launched in April.