Inflation rate down 0,20 percent

Business Reporter
Year-on-year inflation slowed to 2,20 percent in May shedding 0,20 percentage points from the previous month, the Zimbabwe National Statistics Agency (Zimstat) has said. The agency said this means that prices as measured by the all items Consumer Price Index (CPI) increased by an average of 2,20 percentage points between May 2012 and May 2013.

Zimstat also said the year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 3,54 percent while the non-food inflation rate was 1,54 percent.

It said the month-on-month inflation in May 2013 was -0.21 percent shedding 0.14 percentage points on the April 2013 rate of -0.07 percent.
This means prices as measured by the all items CPI decreased at an average rate of 0.21 percent from April 2013 to May 2013.

Zimstat said the month-on-month food and non -alcoholic beverages inflation stood at -0.28 percent in May 2013, shedding 0.16 percentage points on the April 2013 rate of 0.44 percent.

It said the month on month non-food inflation stood at -0.17 percent, shedding 0.32 percentage points on the April 2013 rate of 0.11 percent.

An economic commentator Mr Bradwell Mhonderwa said the impact of a reduction in inflation was not being largely felt by consumers because the slowdown was marginal.

“Although inflation continues to decline the rate at which it is going down is minimal resulting in consumers not feeling the impact when buying.

Inflation rate has been going down in the last few months due to sales promotions and stability in the price of fuel. And the current drop in inflation can be largely attributable to a decline in the price of fuel last month,” he said.

Economic analysts have said although Zimbabwe’s inflation was the lowest in the region, it did not reflect the real situation of what was happening on the ground with regards to production in the economy.

Zimbabwe adopted a multi-currency system in February 2009, which economists say has kept the country’s rate of inflation on the low side.