Economics
Surging Inflation Forces Central Bank to Adjust Zimbabwe Target
- Central bank has forecast inflation this year in 25%-35% range
- Zimbabwe dollar is the worst-performing currency in the world
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Zimbabwe’s central bank is revising its inflation forecast upward after annual price-growth surged to more than 100% this month.
Factors including shortages of everything from corn to cooking oil stoked by the war in Ukraine, rising fuel prices and domestic exchange-rate volatility are reasons to adjust the outlook, Reserve Bank of Zimbabwe Governor John Mangudya said in a phone interview Monday. The bank said at the start of 2022 it expects inflation of 25% to 35% by year-end.