UPDATE 1-Zimbabwe May inflation quickens to 6.1 pct y/y

Tue Jun 15, 2010 2:32pm GMT

[-] Text [+]

* Inflation bounces from negative figures earlier in yr

* Price rises threaten single digit inflation target

* IMF wants wage restraint to avoid inflation spiral

(Adds detail, background)

HARARE, June 15 (Reuters) - Zimbabwe's inflation quickened to 6.1 percent year-on-year in May compared with 4.8 percent in April, the Central Statistical Office (CSO) said on Tuesday.

The figures came a day after the International Monetary Fund (IMF) warned public and private sector workers to exercise wage restraint to avoid pushing the southern African country back into an inflation spiral. [ID:nN14223380]

The annual figure was firmly in negative territory at -4.8 percent as recently as January and analysts say the rise in May increases the risk that inflation will be back in double figures by the end of the year.

Zimbabwe, whose inflation peaked at 500 billion percent in late 2008, has stabilised its economy under a coalition government set up last year by bitter rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai.

CSO data showed that the higher inflation print in May was largely due to rising food prices and transport costs. Continued...

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