Zimbabwe to give first indication of ZiG’s impact on inflation in May

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It will also supply blended inflation data, its current price measure and one that is US dollar based, its main transacting currency, Zimbabwe National Statistics Agency said Monday in an online briefing.

The blended inflation rate adopted in September, which combines local currency and US dollar weights, climbed to an eight-month high of 57.5% in April, the agency said. Consumer prices in the month rose 2.9% from 4.9% in March.

Annual dollar-only inflation, released by the statistics agency for the first time, was 3.2% in April and 0.8% monthly, showing the extent to which the local currency’s exchange-rate volatility fuels inflation.

The southern African nation that’s had bouts of hyperinflation and triple-digit inflation introduced ZiG, short for Zimbabwe Gold on April 5. The currency backed by a basket of precious metals replaced the Zimbabwean dollar, which lost about 80% of its value against the US currency this year. The rapid depreciation of the currency led many to abandon it for the greenback.

Authorities expect the ZiG to end exchange-rate volatility, surging inflation and the dominance of the US dollar.

Year-on year inflation data in ZiG will only be computed from April next year, the statistics agency said.

The central bank reset interest rates from 130%, a world record, to 20% on account of the new currency on April 5.