adminHarare Bureau
THE annual rate of inflation was unchanged in August 2015, coming in at minus 2,77 percent, reflecting the low aggregate demand currently obtaining in the economy.
Price declines are expected to continue in the remainder of the year, with average inflation for 2015 now projected at minus 2 percent against the original projection of minus 1 percent, Finance Minister Patrick Chinamasa said in his recent budget review.
Minister Chinamasa said the falling prices in the local economy, reflects in part correction of domestic price structures, which had trended past hyper-inflationary pricing practices.
But the South African currency hit average lows of 12,1 rand against the US dollar in July in what could to a certain extent explain the stagnancy in the inflation rate for the period.
The Zimbabwe National Statistical Agency reported yesterday that annual inflation rate was unchanged at minus 2,77 percent in August from minus 2,81 percent in the month of July.
“This means that prices as measured by the all items consumer price index decreased by an average minus 2,77 percentage points between August 2014 and August 2015,” Zimstat said.
derick.khumalo