Black market fuelling inflation – RBZHARARE – The Reserve Bank of Zimbabwe (RBZ) has blamed widening exchange rate premiums on the alternative market for stoking inflation which has in turn fuelled increases in prices of goods and services since July this year.Economists believe three key factors have driven the fast increase in inflation in Zimbabwe and these include general rise in global inflation, growth in money supply and the widening parallel market rate.Commenting in its October monthly economic review, the bank said inflation increased to 6.4 percent in October 2021 from 4.73 percent in September 2021, driven by rises in both food and non-food inflation.Monthly food inflation surged from 4.82 percent in September 2021 to 7.56 percent in October 2021, following increases in prices of all food sub-categories, led by bread and cereals, vegetables and meat.Non-food inflation also increased from 4.67 percent in October to 5.56 percent in October 2021, spurred by rises in costs […]
Black market fuelling inflation – RBZ
