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Business Reporter
THE year-on-year inflation for October as measured by the Consumer Price Index shed a further 0,28 percentage points to 0,59 percent as the liquidity situation continues to get tighter coupled with the weakening of the rand.
According to figures from Zimstat, the rate of increase in prices has slowed down resulting in a continued but lower rate of real value destruction in money.
Generally because of the tight liquidity situation, there is an across-the-board weakness in consumer spending or low aggregate demand.
Inflation is predicted to decline further as the country’s economy slows down and local prices track the declining value of the South African rand, resulting in generally decreasing local prices.
The country is largely dependent on imports from South Africa.
The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at -0.74 percent while the non-food inflation rate stood at 1,25 percent.
The month-on-month inflation rate in October -0,01 percent shedding 0,070 percent points on the September rate of 0,05 percent.
This means that prices are measured by the all items CPI decreased at an average rate of -0,01 percent from September to October.
“The month-on-month inflation rate is given by the percentage in the index of the relevant month of the current year compared with the index of the previous month in the current year,” Zimstat said.
The month-on-month food and no-alcoholic beverages inflation stood at 0,04 percent in October, shedding 0,22 percentage points on the September 2013 rate of -0,18 percent.
The month-on-month non-food inflation stood at –0,04 percent, shedding 0,21percentage points on the September rate of 0,17 percent.
The CPI for the month ending October stood at 100,32 compared to 100,33 in September and 99,74 in October 2012.
Online Reporter