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Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S month-on-month inflation rate increased by 2,71 percentage points last month to settle at 4,3 percent from 1,67 percent in February, figures from the Zimbabwe National Statistics Agency (ZimStat) show.
In a report released on Monday, Zimstat said this means that prices as measured by the all items Consumer Price Index increased by an average rate of 4,38 percent from February 2019 to March 2019.
“The month-on-month food and non-alcoholic beverages inflation rate stood at 5,10 percent in March 2019, gaining 1,54 percentage points on the February 2019 rate of 3,56 percent,” said ZimStat.
It said the month-on-month non-food inflation rate stood at 4,05 percent, gaining 3,35 percentage points on the February 2019 rate of 0,70 percent.
Economic commentators have attributed the rise in inflation to the disparities in exchange rate between the US$ and the RTGS$ where businesses are charging premium prices due to uncertainty.
They said the uncertainty was stemming from the fact that the market believes in the US dollar as the only currency that will protect their assets and be able to conduct meaningful transactions.
In this light, the Government has also been urged to try and mobilise as much lines of credit as possible to improve the existing foreign exchange reserves in the country and stabilise the foreign exchange rate in the market.
Zimbabwe also needs to stimulate production in the manufacturing sector to generate exports and stabilise the negative macro-economic situation.
— @okazunga.
Online Reporter