Central Statistics warns of higher inflation

The Central Statistics Office- CSO -has warned of increased inflation in the country in the aftermath of the removal of subsidy.

CSO Acting Director, Goodson Sinyenga said the rate of inflation is expected to rise as producers will increase the price of their goods and services to offset the increase in the cost of production.

Meanwhile the country’s annual rate of inflation has increased by 0.5 percentage points in the month of May which now stands at 7 percent from 6.5 percent last month.

He attributed the increased in the rate of inflation to the increase in non-food and food items.

Sinyenga said at a media briefing on Thursday that food items contributed to 3.3 percent while non food item contributed 3.7 percentage points.

There has been increased in price of good and services after government removed subsidy on fuel and maize.