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Business Reporter
ANNUAL inflation increased by 0,19 percentage points to minus 1,20 percent in March as prices keep declining although at a slower pace than last year, in what analysts attribute to the effect of an overly strong dollar.
The Zimbabwe National Statistics Agency said “this means prices as measured by all items CPI declined by an average of 1,20 percentage points” in the 12 months to March 2015.
The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at minus 2,77 percent while the non-food inflation rate was minus 0,44 percent.
Zimstat said the month-on-month inflation rate in March 2015 was minus 0,03 percent gaining 0,04 percentage points on the February 2015 rate of minus 0,07 percent.
The month-on-month food and non-alcoholic beverages inflation rate stood at minus 0,03 percent in March 2015, shedding 0,08 percentage points on the February 2015 rate.
“The month-on-month non-food inflation rate stood at minus 0,03 percent, gaining 0,10 percentage points on the February 2015 rate of minus 0,13 percent,” Zimstat said.
Zimbabwe’s inflation has remained largely low and in negative territory due to the effects of a too strong US dollar, which is the dominant currency.
Zimbabwe took its own currency out of circulation after the value of the local currency had been decimated by a decade of hyperinflation and general economic meltdown.
It now enjoys the advantage of stronger currency when buying from outside due to the strong dollar, which the IMF estimated to be around 20 percent stronger for Zimbabwe.
Online Reporter