Inflation gathers momentum

Source: Inflation gathers momentum – DailyNews Live

16 May 2017

HARARE – Zimbabwe’s annual inflation rate accelerated to 0,48 percent in
April this year from 0,21 percent in March, the national statistics agency
said yesterday.

But analysts said the increase had more to do with pricing vagaries than
increased economic activity as food prices has been increasing for the
past few months as a result of foreign currency shortages.

This has resulted in most businesses resorting to the black market where
they pay a premium of up to 10 percent to get the scarce United States
dollars. The premium is then passed to the final consumer, which increases
the general price level.

The month-on-month inflation rate in April 2017 was 0,05 percent gaining
0,02 percentage points on the March 2017 rate of 0,03 percent.

The year-on-year food and non-alcoholic beverages inflation prone to
transitory shocks stood at 1,35 percent whilst the nonfood inflation rate
was 0,08 percent.