Published: 11 August 2017

Zimbabwe's inflation is forecast to rise to around two to three percent at the end of this year, before accelerating sharply in 2018 due to election spending.

The annual inflation rate, which had been in deflation since September 2014, moved into positive territory from -0,65 percent in January 2017 to 0,31 percent in June 2017.

Inflation is expected to remain in the positive territory due to rising international oil prices, government's import restrictions, low imports due to foreign currency shortages and broader government protectionist measures, financial research firm Equity Axis has said.

"Government expansionary policies and increased expenditures associated with elections together with the expected injection of more bond notes will help support inflation in the positive territory. We, however, raise concerns over the three-tier pricing," Equity Axis said.

"A positive low inflation may be beneficial to businesses as it helps grow margins." 
- dailynews

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