Zimbabwe: Terrifying high inflation rate!
Prof. Mthuli Ncube needs to really show the new dispensation and prove that the RTGS Dollar and Bond-Notes put together into the Zimbabwe Dollar really will save the economy. Because, the state is clearly failing on putting trust in the economy. The financial markets clearly has lack of trust or not feeling it. The Zimbabwe African National Union – Patriotic Front (ZANU-PF), the second republic has to prove now, that they can fix what the Mugabe regime couldn’t fix in 2008.
Now, the Ministry of Finance, the Professor and Minister has to prove himself. That he can fix this, before the hyper-inflation hits the fan. Since, there is an giant issue. The inflation is already getting out of hand.
On the 15th April 2019, the inflation rate was at 66,8%. By the 15th May 2019 it had already become 75,86%, it continued to spiral and by 17th June it was at 97,85%. That all seems bad enough, as the progression and estimates has been broken every month. Now today on the 15th July 2019, it has hit 175,66%. That means since April the rate has nearly tripled and is now at the level of triple digit.
The prices must really skyrocket, the salaries will not be able to follow these sort of numbers. The state cannot manage to finance the state nor get the civil servants paid enough. Now we can anticipate the fuel, gas and electricity prices to go up. It got too, because, the economy is crashing. When the inflation get to this, you know something is up. The state is now getting the inflation at a ten-year high. They are surely trying to get back into the 2008 mojo.
Mthuli Ncube really have to start doing some miracles, some sort of divine god-like acts that turns water into wine. He needs to dig deep into the shelters of misbelief and find redemption. Because right now, the bridges are burning and the state needs.
Just to tell how bad it is, the estimates in the coming months is already at 200% in August and by mid-September to get to 251%. If these are true, than we know the drill. The lack of foreign exchange, prices out of control and state reserves emptied. The need for IMF, World Bank and Chinese Exim Bank to save the day. To stabilize the economy and revamp the economy.
The ZANU-PF clearly doesn’t know how to build trust or fix this. Since, they are doing the same thing all over and they have not launched the new currency yet. This shows how dire and destroyed the economy is. Peace.