By Davison Vandira
ECONOMISTS have called on fiscal and monetary authorities to focus on policies that strengthen domestic production capacities to stamp out resurfacing inflationary pressures.
The sentiments from the economic watchers come after data released by the Zimbabwe National Statistics Agency ( ZIMSTAT) revealed that month on month inflation increased to 6,4 percent this month from 4,7 percent in September.
The consensus among economists is that continued support of productive sectors that increase the domestic supply of goods and services will slow down inflation to foster sustainability in economic management.
According to economic minds, the upward trend in a month on month inflation over the last three months requires enhanced support to increase national output and stabilise price levels.
“Agricultural support schemes by the government have done a lot in slowing down inflation in 2021 as such more support across the value chain will increase national output which will slow down the increases in the price levels,” said Kudakwashe Mugova an Economic Analyst.
“More effort is needed if the economy is to realize that target of single-digit inflation by the year-end. Normally inflation targeting measures hurt economic growth but growth is estimated to be at around 7.8percent by the year-end. This means that the government can focus more on slowing down the inflation in the last quarter of the year,” said Titus Mukove an Economist.
Economic observers are underpinning the successful implementation of the National Development Strategy One on stable inflation levels that motivates productivity, production and profitability hence the need to take corrective action on undesirable Inflation movements.