By Xinhua

HARARE: The annual inflation rate in Zimbabwe accelerated to 34.8 percent in January from 26.5 percent in December 2023, the Zimbabwe National Statistics Agency said Monday.

Month-on-month inflation for January also increased to 6.6 percent, gaining 1.9 percentage points on the December 2023 rate of 4.7 percent, the agency said in a statement.

The major drivers of inflation during the month were food, housing, water and electricity, it said.

The rise in inflation comes against the backdrop of the depreciation of the local currency against the U.S. dollar, as foreign currency continues to be in short supply in the country.

The currency volatility has resulted in increasing prices to keep up with the rising inflation.

Zimbabwe has a multi-currency system. Last year, the government extended the use of foreign currency in settling domestic transactions and payment of goods and services until December 2030.