adminTHE slight increase in the rate of annual inflation is a small sign that there might be improved economic activity following months of deflation.
Zimstat on Friday announced that annual inflation for the month of July rose to 0,31 percent from -0,08 in June.For the past few months, the country has been on deflation, in what economists said was a sign of a weakening economy as business was now being forced to reduce prices not out of competition but to just dispose stock.
Economic activity across many sectors generally improves in the second half of the year.
However, the market on Friday broke its 11-day positive streak with the Industrial Index closing 0,27 percent down at 195.33 points, while the Mining Index rallied to gain 4,99 percent closing at 97.28 points. The risers were: NTS, up 47,06 percent to close at 2,5c; Willdale gained 25 percent to close at 0,25c; Bindura gained 6,25 percent , closing at 8,5c; FBCH added 4,35 percent to close at 12c; and Padenga gained 2,5 percent to close at 8,2c. The fallers were: Masimba, down 14,29 percent to close at 3c; Afsun and Dawn both lost 13,04 percent to close at 2c and 1c respectively; CBZ fell 7,69 percent to close at 12c; and Cottco was down 5,56 percent to close at 0,85c. Volumes were sustained, and the value of trades was just under US$2,4 million boosted by trades in the blue chips.
Online Reporter