Inflation over fifty percent

Zimbabwe’s annual inflation rose to 57.7 percent last month on the back of an increase in the cost of food, recreation and entertainment, the ‘Financial Gazette’ reported on Thursday. Latest statistics published by the Central Statistical Office (CSO) showed that the 0.7 percentage point rise in the February inflation figure was powered by a staggering 119.5 percent increase in the index for recreation and entertainment, the report said. Annual inflation stood at 57 percent in January following a 1.8 percentage point increase on the December 2000 inflation figure of 55.2 percent, it added. The rise in recreation and entertainment costs was a result of a huge increase in the cost of entertainment services between February 2000 and last month. This week’s inflation figures were the second to be released by the CSO using the revised consumer price index (CPI) which came into effect in January. Under the new system, food still constituted the largest component of the CPI, with 33.6 percent, and was followed by rent, rates and domestic power, which accounted for 17.3 percent of the index, the newspaper said, adding that recreation and entertainment accounted for only 1.2 percent of the index.