Inflation shoots above 400 percent mark in Zimbabwe

Zimbabwe's annual inflation for the month of October shot to 411 percent gaining 51.2 percent on the September rate of 359.8 percent.

Figures released by the Central Statistical Office (CSO) on Thursday indicate that bicycle sales, which went up by 1,838 percent, postal services 1,765.6 percent and hairdressing 1,750.8 percent, recorded the highest increases in prices over the period.

Month-on-month inflation for October however dropped 10.9 percent from the September rate of 33.3 percent to 22.4 percent, CSO acting director, Moffat Nyoni told a press conference.

For monthly inflation, items that recorded the highest increases included regional airfares 1,680.1 percent, electricity charges 259.2 percent and railway fares which rose by 244.4 percent.

Domestic, household services 0.0 percent and items such as jewelry, clocks, watches -30.9 percent, carpets and other floor coverings -10.6 percent recorded the lowest increases in prices over the monthly period.

Explaining the decline in monthly inflation for October, Nyoni said the prices of some goods and services did not change.

"When we talk of inflation rates we always look at the average and people should not just look at one item. They should realize that there are some prices that did not change at all," the CSO acting boss said.

The inflation rise comes against the background of forecasts made by Reserve Bank Governor, Gideon Gono, last month that inflation will reach levels of between 280 and 300 percent by December.

Excessive money supply growth, supply bottlenecks due to drought and the upsurge in the international prices of oil have been the major factors driving inflation over the past seven months.

Inflation had declined from a peak of 622.8 percent in January 2004 to 123.7 percent in March.

Source: Xinhua