Zimbabwe inflation rises above 175% as currency depreciates

JOHANNESBURG - South Africans are struggling to keep up with inflation currently sitting at 6.3 percent in May.

Meanwhile, in Zimbabwe, inflation rose to its highest level in 5 months, at 175.8 percent in June, up from 86.5 percent in May.

The Zim Dollar has depreciated by over 80 percent in the last 2 months, leading to prices of basic goods and services skyrocketing.  

The latest stats reflect prices in both US and Zimbabwean dollars.

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Around 75 percent of all transactions for food, fuel and services in Zimbabwe are done using the US dollar.

South Africa's inflation rate went up to 7.8 percent, the highest level since the 1980's.

Market analyst, Joseph Busha from JM BUSHA Investment Group, explains why inflation shot up.