Inflationary pressures remain

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Finance minister Tendai Biti says the country’s inflation has remained under control but the government is worried by general increases particularly on education fees and prices of other commodities.

Biti says inflationary threats remain because of continued increase in international fuel prices as a result of ongoing political disturbances in the oil-producing countries of the Middle East.

“The behaviour of few segments of business community still continue to engage in speculative activities similar to those that obtained prior to the adoption of the multiple currency system,” said Biti.

“This is not only counter-productive, but also undermines our collective efforts in the rebuilding of this country.”

He said economies that are oil dependent had a risk of importing inflation.

“I am praying that we do not suffer and remain on course. We are currently doing better than most countries in the region in inflation management,” said Biti.

In January this year inflation recorded an increase in year-on-year to 3,5% from 3,2% in December last year before decelerating to 3,0% and 2,7% in February and March respectively.

He said the year-on-year target of 4,5% by year end was still achievable.

Biti said the strengthening South African rand remained a threat.