March inflation drops to 2,68pc

Business Reporter
ZIMBABWE’S annual rate of inflation for March shed 0,3 percentage points on the February figure to 2,68 percent, the Zimbabwe National Statistics Agency (ZimsStat) reported.

“This means that prices as measured by the all items CPI (Consumer Price Index), increased by an average of 2,68 percent between March 2017 and March 2018,” said ZimStat.

Month on month, inflation rate in March was -0,25 percent, shedding 0,33 percentage points on February 2018 rate of 0,08 percent.

This means prices as measured by the all items CPI decreased by an average rate of -0,25 percent from February to March 2018.

The year on year food and non-alcoholic beverages inflation for March, prone to transitory shocks, stood at 4,54 percent whilst the non-food inflation rate was 1,81 percent.

The month on month food and non-alcoholic beverages inflation rate stood at -0,03 percent in March 2018, gaining 0,15 percentage points on the February 2018 rate of -0,18 percent.

The month on month non-food inflation rate stood at -0,36 percent, shedding 0,57 percentage points on the February 2018 rate of 0,21 percent.

Inflation rate is anticipated to remain in the positive territory on the back of improved production across sectors as Government moves in to enhance productivity and exports buoyed by protectionist measures and policies to promote production. Economists, however, said the inflation figures were not entirely reflective of developments in the economy, especially the informal sector where there was a lot of activity.

“The inflation rate is mainly capturing what is happening in the formal system,” said economist Persistence Gwanyanya by telephone.

Since September last year, the economy has been operating under a three tier pricing system for cash, real time gross settlement (RTGS) and mobile money payments although it has been deemed illegal.

This adds to the cash shortages and low nostro balances, which of late have been affecting the economy.

The opening of the tobacco selling season last month is, however, expected to boost foreign currency flows and help ease the forex deficiencies in the country.