year on year inflation.jpgThe country’s fiscal authorities has expressed optimism that the country is on course to attaining the target of 4.5 % annual inflation rate given the continued decline in month-on-month inflation rate for the past three months.

The confidence expressed by the fiscal authorities in attaining the set 4.5 annual inflation rate target comes at the back of recently released positive inflation figures for the month of August which showed that the year-on-year inflation rate declined by 0.6 percentage points from July rate of 4.1 %to August rate of 3.6 %.

 

Commenting on the current performance of the economy, Finance Minister Tendai Biti, attributed the slow down in inflation rate to increased competition and liberalisation for the market.

 

biti on inflation.jpgHe was however quick to express concern over the speculative behaviour by some section of the local business community.

“The message has now gone home that we will not tolerate any speculative tendencies. We also believe the positive inflation rate is due to increased competition on the local market,” said Mr. Biti.

 

Observers and economic analysts have however argued that the decline in inflation rate has not been felt by consumers given the greater dependency burden due to lack of employment and little disposable incomes.

 

Government’s adoption of sound macro- economic policies as well as the introduction of the multi currency system has resulted in the reduction of inflationary pressures.

 

The country also recorded the lowest inflation rate in the region last month.