HARARE – Zimbabwe continues to experience a slowdown in price increases as evidenced by a 0,03 percent rise in year on year inflation to 2,71 percent in April.
Inflation is a measurement of the rate at which prices are increasing and ZIMSTAT data indicates that the year on year inflation rate increased to 2,71 percent in April from 2,68 percent in March this year.
Market watchers said the marginal increase in inflation was mainly fuelled by price adjustments of some food commodities on the back of increased spending ahead of the second school term and from tobacco growers, while marginal fuel price adjustments also led to the inflation rate of non-food items to close at 1,67 percent.
On a month on month basis, the inflation grew by 0,08 percentage points.
The marginal rise in the year on year inflation comes when treasury and monetary authorities are projecting an inflation rate of below three percent by year end.
Zimbabwe is reeling under the effects of the multi-tier pricing system, currency premiums and speculative price hikes which have put unnecessary pressure on inflation.
The annual rate of inflation, which is however below 10 percent threshold, means the economy is not in hyperinflation. – ZBC