Business / Economy
Inflation starting to climb
16 Feb 2011 at 03:42hrs | Views
The country's rate of inflation for January this year marginally increased by 0,1 % points to 3,3 % on the back of price increases that are posing challenges on Government's effort to consolidate macro- economic gains.
The latest spate of price increases for goods and services within the economy has resulted in the inflation rate marginally increasing by 0,1%.
According to the Consumer Price Index ( CPI ) which is used to calculate inflation, the latest increase means that prices have risen by 0,1% between January last year and January this year.
Zimbabwe National Statistical Agency Price Statistician, Mr. Arnold Damba, said there has been a sudden marginal increase in the prices of goods and utilities such as food and non- alcoholic beverages, clothing and footwear, housing bills, electricity tarrifs and water charges. "There has been a marginal rise in the rate of inflation in a move that has suddenly created challenges of measures to restore economic confidence," said Mr Damba.
An economic commentator, Mr. Jonathan Kadzura said inflationary pressures are in the long run likely to derail measures to increase business confidence and attracting new investment.
"There are fears that the sudden rise in inflation might create challenges in efforts to turnaround the economy and there needs more attention in terms of boosting productivity," said Mr Kadzura.
While Government is this year forecasting an annual inflation rate of 4,5%, there are fears that failure to curb price increases and profiteering in some sections of the business community might pose challenges in stabilising economic variables at a time the country's inflation rate remains favorable compared to other SADC economies whose inflation levels are averaging 7% and above. However, prices in Zimbabwe are still high compared to the region.
The latest spate of price increases for goods and services within the economy has resulted in the inflation rate marginally increasing by 0,1%.
According to the Consumer Price Index ( CPI ) which is used to calculate inflation, the latest increase means that prices have risen by 0,1% between January last year and January this year.
Zimbabwe National Statistical Agency Price Statistician, Mr. Arnold Damba, said there has been a sudden marginal increase in the prices of goods and utilities such as food and non- alcoholic beverages, clothing and footwear, housing bills, electricity tarrifs and water charges. "There has been a marginal rise in the rate of inflation in a move that has suddenly created challenges of measures to restore economic confidence," said Mr Damba.
An economic commentator, Mr. Jonathan Kadzura said inflationary pressures are in the long run likely to derail measures to increase business confidence and attracting new investment.
"There are fears that the sudden rise in inflation might create challenges in efforts to turnaround the economy and there needs more attention in terms of boosting productivity," said Mr Kadzura.
While Government is this year forecasting an annual inflation rate of 4,5%, there are fears that failure to curb price increases and profiteering in some sections of the business community might pose challenges in stabilising economic variables at a time the country's inflation rate remains favorable compared to other SADC economies whose inflation levels are averaging 7% and above. However, prices in Zimbabwe are still high compared to the region.
Source - Byo24News
