The latest spate of price increases for goods and services within the economy has resulted in the inflation rate marginally increasing by 0,1%.
According to the ConsumerÂ PriceÂ Index (CPI ) whichÂ is used to calculate inflation, the latest increase means that prices have risen by 0,1%Â between January last year and January this year.
Zimbabwe National Statistical Agency Price Statistician, Mr. ArnoldÂ Damba,Â said there has been a sudden marginal increase in the pricesÂ of goods and utilities such as food and non-alcoholic beverages, clothing and footwear, housing bills, electricityÂ tarrifs and water charges.
“There has been a marginal rise in the rate of inflation in a move that has suddenly created challenges of measures to restore economic confidence,â€ said Mr Damba.
An economic commentator,Â Mr. Jonathan Kadzura, said inflationary pressures are in the long run likely to derail measures to increase business confidence and attracting new investment.
â€œThere are fears that the sudden rise in inflation might create challenges in efforts to turnaround the economy and there needs more attention in terms of boosting productivity,â€ said Mr Kadzura.
While government is this year forecasting an annual inflation rate of 4,5%, there are fears that failure to curb price increases and profiteering in some sections of the business community might pose challenges in stabilising economic variables at a time the countryâ€™s inflation rate remains favorable compared to otherÂ SADCÂ economies whoseÂ inflation levels are averaging 7% and above.
However, prices in Zimbabwe are still high compared to the region.