Zimbabwe's Inflation On The Rise

“The year-on-year inflation rate for the month of May 2010 as measured by the all-items consumer price index stood at 6.1 percent gaining 1.3 percentage points on the April rate of 4.8 percent,” the Central Statistical Office said in a statement.

“The year on year food and non alcoholic beverages inflation prone to transitory shocks stood at 6.70 percent whilst Non food inflation stood at 5.80 percent.”

The CSO said the month on month inflation rate for May stood at 0.3 percent up from 0.1 percent of April.The CSO said:”The month-on-month inflation rate in May was 0.3 percent gaining 0.2 percentage points on the April rate of 0.1 percent.”

 “The month on month food and non alcoholic beverages inflation stood at 0.57 percent in May 2010 shedding 0.33 percentage points on the April 2010 rate of 0.90. The month on month non food inflation stood at 0.13 percent gaining 0.35 percentage points on the April rate of -0.22 percent.”

“The CPI for month ending May stood at 95.3 compared to 95.1 in April 2010 and 89.9 in May 2009.”

Zimbabwe’s inflation has been in the lower single digits since the formation of the unity government which introduced multi-currency system which off-loaded the worthless Zimbabwean dolar which had been ravaged by inflation.

However, inflation has been slowly rising and the International Monetary Fund (IMF) warned on Monday that the country risks inflation rise if the country doesn’t exercise restraint in its wage bill.