Annual inflation rate ends at 60,74 percent

By ZBC Reporter

Government is expected to maintain a tight grip on price stability in line with an annual inflation target range of between 15 percent and 20 percent next year.

Data from the Zimbabwe National Statistics Agency (ZIMSTAT) shows that annual inflation continued to drop during the greater part of this year from three digits in January to double digits by end of this year.

According to the agency, inflationary pressures, However, resurfaced during the last two months but closed the year at 60, 74 percent compared to 348,39 percent in December last year.

For economists, addressing cost drivers for goods and services is key.

“The need to address costs drivers that are fuelling inflation becomes of greater importance that is identifying them putting measures to tackle them and monitor such factors so as to ensure that incomes are not eroded, business is not affected and that the current macro-economic structures are not derailed in the short to long term,” said Buy Zimbabwe Chief Executive Officer Alois Burutsa.

In a statement, Authorities, attributed the resurfacing pressures to widening parallel market premiums and increases in global food and energy prices.

Industry players have also welcomed fiscal and monetary authorities’ commitment to bringing certainty of profitability for industry.

“An economy needs certainty in terms of planning, remember inflation is the rate at which prices are increasing and is an indicator that is used by investors on whether to put their money in an economy or not therefore corrective measures are required to sustain current gains,” said Economist Dr Zack Murerwa.

“Price stability helps the economy by not printing more money while enabling salaries to be stable and overall economic performance being stable and avoiding erosion of investments so the measures to sustain such initiatives are of greater importance,” added Dr. Nyasha Kaseke University of Zimbabwe Business School Chairperson.

Under the National Development Strategy One, maintenance of price and exchange rate stability over the medium to long term is important in fostering business planning and investments.

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