Zimbabwe’s annual rate of inflation expectedly stood at 540,16 percent for the month of February, according to latest figures by the Zimbabwe National Statistical Agency.

Data from the agency also shows that on a month-on-month basis, local prices of goods and services rose by 13,52 percent during the same period compared to 2,23 percent during the previous month.

The Reserve Bank of Zimbabwe (RBZ) is on record saying that Zimbabwe’s year-on-year inflation rate to fall to 50 percent by the close of this year.

The latest significant in the year-on-year inflation rate was driven by prices hikes as businesses continue to react to the depreciating local currency following currency reforms last year.

In February 2019, Zimbabwe’s monetary authorities responded to calls for a free floating exchange rate system and set up the foreign currency interbank market.

Later that June, the Government effectively ended the long-standing multicurrency system and re-introduced the Zimbabwe dollar through Statutory Instrument 142 of 2019.

Between February 2019 and March 2020, the local currency (RTGS dollar, then later Zimbabwe dollar) has moved from trading at a rate of 2,5 to the United States dollar, to around 19 to the US dollar on the interbank market.

Prior to the calculation of the February 2020 year-on-year inflation, Zimbabwe’s annual rate of inflation was last calculated in June 2019, at 175,6 percent.