Zim’s 2017 inflation forecast at 2-3pc

Source: Zim’s 2017 inflation forecast at 2-3pc – DailyNews Live

Staff Writer  10 August 2017

HARARE – Zimbabwe’s inflation is forecast to rise to around two to three
percent at the end of this year, before accelerating sharply in 2018 due
to election spending.

The annual inflation rate, which had been in deflation since September
2014, moved into positive territory from -0,65 percent in January 2017 to
0,31 percent in June 2017.

Inflation is expected to remain in the positive territory due to rising
international oil prices, government’s import restrictions, low imports
due to foreign currency shortages and broader government protectionist
measures, financial research firm Equity Axis has said.

“Government expansionary policies and increased expenditures associated
with elections together with the expected injection of more bond notes
will help support inflation in the positive territory. We, however, raise
concerns over the three-tier pricing,” Equity Axis said.

“A positive low inflation may be beneficial to businesses as it helps grow
margins.”