HARARE – Zimbabwe’s annual rate of inflation for July, 2018 accelerated by 1.38 percentage points to 4.29 percent as the country continue to suffer from the impact of multi-tier pricing, currency premiums and speculative prices rises, which threaten to sustain pressure on inflation.

Latest data from national statistics agency, Zimstat, on Wednesday showed that the country’s annual inflation gained significantly from the June 2018 rate of 2.91 percent.

“The year on year Food and Non Alcoholic beverages inflation prone to transitory shocks stood at 6.35 percent whilst the Non-Food inflation rate was 3.33 percent,” Zimstat said.

On a month on month basis, July 2018 inflation rate was 0.98 percent gaining 1.03 percentage points after shrinking -0.05 percent in June.

“This means that prices as measured by the all items CPI increased by an average rate of 0.98 percent from June 2018 to July 2018,” Zimstat said.

Zimstat noted that the month on month Food and Non Alcoholic Beverages inflation rate stood at 0.74 percent in July 2018, gaining 0.97 percentage points on the June 2018 rate of -0.23 percent.

Additionally, the month on month non-food inflation rate stood at 1.09 percent, gaining 1.05 percentage points on the June 2018 rate of 0.04 percent.

As Zimbabwe battles spates of prices increases last year, the International Monetary Fund projected the annual rate would hit 9.5 percent by the end of 2018.

On a month on month basis, July CPI rose 1 percent to 100.65 after standing at 99.68 in June and 96.51 in July, 2017.

The economy has been projected to take a positive shift following the July 30, 2018 general elections. However, the outcome has been disputed and violent scenes which erupted has further put any hope for change in doubt.

Zimbabwe’s challenges to meet significant foreign debts, nor provide cash for some crucial imports has been persisting for quite long and the black market rate for US dollars and other hard currencies such as the South African Rand continue surging.

Most of the economic transactions are now electronic with the value of price marked goods significantly higher in real terms if the purchase is made in US dollars, South African Rands, or even Bond Notes which cannot be used outside Zimbabwe.