adminThe latest inflation outcome is in line with the single-digit inflation levels targeted by Government and is relatively low compared to averages prevailing in the Sadc region.
Finance Minister Tendai Biti had earlier on projected inflation for 2011 to close the year at between 4,5 and 5 percent. The December figure, however, reflected an increase from the previous month’s rate of 4,2 percent.
“The year-on-year inflation rate for the month of December 2011 as measured by the all-items Consumer Price Index (CPI) stood at 4,9 percent, gaining 0,7 percentage points on the November 2011 rate of 4,2 percent,” revealed Zimstats yesterday.
This means prices as measured by the all-items CPI increased by an average 4,9 percentage points between December 2010 and December 2011.
The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 5,81 percent whilst non-food inflation stood at 4,5 percent. Zimbabwe’s annual inflation largely remained stable in 2011, despite notable increases in utility charges, especially electricity and food prices that maintained an upward trend during the year.
The African Development Bank, in its monthly economic review for December 2011, said that the main drivers of annual inflation last year, included communications, transport, housing, water, electricity and other fuels and education.
The AfDB also noted that with low average incomes and loss of employment in some sectors of the economy, many people were relying on rentals as major source of income, which resulted in high rental charges.
Analysts, however, opine that the other major factors that posed a danger to local inflation included the rand/United States dollar exchange rate and South Africa’s inflation.
Most of Zimbabwe’s imports come from South Africa. Meanwhile, Zimstats reports that the month-on-month inflation rate in December 2011 was 0,2 percent shedding 0,3 percentage points on the November 2011 rate of 0,5 percent.
The month-on-month food and non-alcoholic beverages inflation stood at 0,33 percent in December 2011 shedding 1,15 percentage points on the November 2011 rate of 1,48 percent.
On the other hand, month-on-month non-food inflation stood at 0,15 percent gaining 0,06 percentage points on the November 2011 rate of 0,09 percent.
Online Reporter