The year on year inflation rate has increased by 0,4 percentage points from the month of June to July, a development that has been attributed to the recent wave of price hikes by retailers following the reintroduction of duty on basic commodities.
Latest figures from the Zimbabwe National Statistical Agency (ZIMSTAT) indicate that the year on year inflation rate as measured by the Consumer Price Index (CPI) surged from the June rate of 2,9% to 3,3% in July.
The month on month rate in July was 0,3 gaining 0,1 percentage points on the June rate of 0,2%.
The figures mean that prices increased by an average of 3,3 percentage points between July 2010 and July 2011.
The upsurge in the inflation rate, which comes barely a month after the government reinstated duty on basic commodities, is a cause of concern to local market.
Economic analyst, Mr Chris Mugaga however believes that apart from the price hikes, the absence of a supplementary budget and the current budget deficit are some of the militating factors.
While the reintroduction of duty on basic commodities was meant to promote local industry, some unscrupulous business people are taking advantage of the policy to effect unjustified adjustments.
Over the past few weeks, the cost of imported 2-litre cooking oil has gone up from around US$3,60 to around US$4,60.
The recent rise in the inflation rate has raised fear in the ability of the country to attain the 4,5% inflation rate target by year end.