Significant increases in international oil prices and global food prices, which are projected to continue firming in the short to medium term, remain a risk to domestic inflation.
Annual headline inflation, which has been on a downward trend since the beginning of the year rose for the first time this year from 2,5% in May to 2,9% in June.
In an analysis of the June inflation trends the Reserve Bank of Zimbabwe (RBZ) said the surge in annual inflation was driven by both food and non-food inflation.
Annual food inflation accelerated from 2,3% in May to 3% in June while non-food inflation rose from 2,6% in may to 2,8% in June.
Month-on-month food inflation quickened from -0,07% in May to 0,12% in June.
“Month-on-month food inflation was mainly driven by vegetables, mineral water, soft drinks and fruit juices, meat, bread and cereals,” RBZ said in its analysis.
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“The worsening cold weather conditions impact negatively on vegetable output thereby fuelling vegetable prices.”
Monthly non-food inflation stood at 0,3% in June compared to 0,14% in May 2011 driven by housing rents, water, electricity and gas. The central bank said the country’s inflation of 2,9% as of June remained low compared to the region and is likely to be influenced by the developments in the US$/South African rand exchange rates and international oil prices.