The countryâ€™s year on year inflation has risen to 4,3% from 3,5% in August this year mainly due to recent electricity tariff increases for industry and consumers.According to official data releasedÂ to ZBC News by the Zimbabwe National Statistics Agency (ZIMSTAT), inflation for the month of September this year surged by 0,8 percentage points to 4,3% from 3,5% mainly due to the 35% electricity tariff adjustment effected last month.
An economic commentator, Mr. Danny Musukuma says the rise in inflation will create challenges for fiscal authorities in maintaining stable macro-economic conditions.
â€œItâ€™s a challenge to fiscal authorities and we are waiting to see what will happen,â€ said Mr. Musukuma.
Zimbabweâ€™s year on year inflation which has been averaging 2,3% points in the first six months of this year has however been on an upward trend as local companies experience high production costs due to the absence of cheap loans as well as increases in utility bills.
Although government had initially projected inflation rate of below 4,5% by end of this year, economic experts say the resurfacing ofÂ price increases for basic goods and services is likely to result in fiscal authorities failing to achieve the projected targets.