Inflation dips further

HARARE - Zimbabwe's annual inflation rate has maintained its downward trend shedding 0,39 percentage points on the August 2012 rate of 3,63 percent to close the month of September at 3,24 percent.

Economist Takunda Mugaga however, maintains the continued decline remains meaningless inlight of the economic challenges that continue to dog the country.

“There is nothing to celebrate about these figures. I cannot totally dismiss the figures but the inflation decline is not transmitting to the macro-economic levels thus people are not benefiting from them,” he said.

He said although the country was likely to meet its targeted inflation figures for the year, a lot of measures needed to be put in place to improve the major drivers.

“We continue to face liquidity challenges and as long people do not have electricity and water this will not mean much,” Mugaga said.

According to the Zimbabwe Statistical Agency (Zimstat) figures prices as measured by the all items CPI increased by an average of 3,24 percentage points between September 2011 and September 2012.

The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the same month in the previous year.

The country’s year-on-year food and non-alcoholic beverages inflation which is usually prone to transitory shocks stood at 4,80 percent whilst non-food inflation stood at 2,55 percent.

Zimstat announced the month-on-month inflation rate for September was 0,46 gaining 0,64 percentage points on the August rate of -0,18 percent.

The month-on-month inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the previous month in the current year.

“This means that prices as measured by the all items CPI increased at an average of 0,46 percent from August 2012 to September 2012.”

The statistical body also announced a 1,19 percentage points gain in the month-on-month food and non-alcoholic beverages inflation which stood at 1,08 percent in September 2012 gaining -0,11 percent on the August rate.

“The month on month non-food inflation stood at 0,19 percent, shedding 0,4 percentage points on the August 2012 rate of 0,21 percent,” Zimstat said.

The minister of Finance Tendai Biti has forecasted a single digit inflation for the country, with an average five percent projected for year-end.

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