HARARE
–
Zimbabwe’s
inflation
rate
rose
sharply
in
January
in
both
U.S.
dollar
and
local
currency
terms,
spurred
by
food
and
housing
prices.
In
dollar
terms
inflation
accelerated
to
14.6
percent
year
on
year
after
rising
by
2.5
percent
in
December.
On
a
local
currency
basis
inflation
rose
to
10.5
percent
month
on
month
in
January
compared
to
an
increase
of
3.7
percent
in
December,
statistics
agency
data
showed
on
Tuesday.
Independent
economist
Prosper
Chitambara
said
last
year’s
severe
regional
drought
and
additional
taxes
introduced
this
month
had
likely
contributed
to
the
inflation
increase.
“It
could
be
the
new
taxes
that
have
taken
effect
this
month.
The
huge
cost
is
passed
on
to
consumers.
Before
the
next
harvest
season
we
are
likely
to
see
an
upward
trend
of
inflation
as
drought
continues
to
exert
inflationary
pressures,”
Chitambara
said.
In
his
latest
budget
Finance
Minister
Mthuli
Ncube
introduced
a
0.5
percent
tax
on
fast
food
and
a
10
percent
tax
on
all
sports
betting
proceeds,
which
took
effect
this
month.
Another
independent
economist,
Tony
Hawkins,
said
U.S.
dollar
inflation
had
been
“grossly
understated”
and
authorities
in
the
Southern
African
country
were
playing
catch-up.
Zimbabwe
launched
a
new
gold-backed
currency
in
April
last
year,
but
it
was
sharply
devalued
in
September
and
foreign
currencies
like
the
U.S.
dollar
are
still
used
for
most
local
transactions.
Since
the
devaluation,
the
Zimbabwe
Gold
currency
has
fallen
further.
It
was
trading
around
26.3
to
the
dollar
on
Tuesday,
according
to
the
central
bank’s
website.