Inflation declines further

Published: 07 June 2015
Zimbabwe's annual inflation rate decreased by 0,12 percentage-points on the January rate of -1,28 percent to -1,40 percent in February, the Zimbabwe National Statistics Agency (Zimstats) said on Friday.

This means that prices as measured by the all items CPI decreased by an average of 1,40 percentage-points between February 2014 and February 2015.

"The year on year food and non-alcoholic beverages inflation prone to transitory shocks stood at -2.87 percent whilst the non-food inflation rate was -0,68 percent," said Zimstats.

On the other hand, the month on month inflation rate in February 2015 was -0,07 percent gaining 0,27 percentage points on the January 2015 rate of -0,34 percent

In February, central bank governor John Mangudya said the continued decline in the inflation rate was a necessary step towards price correction.

"The Reserve Bank's considered view is that the reduction in the rate of inflation in the national economy was and is a necessary process towards correcting the high prices obtaining in the country. It is disinflation and not deflation," he said in the monetary policy statement.

"The disinflation in Zimbabwe is therefore a good development as it increases the consumers' purchasing power. Disinflation is different from a deflation phenomenon which is caused by businesses lowering prices in a desperate attempt to get consumers to buy their products."
- dailynews
Tags: Inflation,

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