19 January 2018
   
ED and Zambia’s Lungu in ‘open talks’
African leaders wait for an apology from Trump
ED Shocker: Mugabe, 93, forgot he fired me
UK-ZIM: Mnangagwa exploits Brexit chance
MDC-T devastated by Bennet’s death
30 ZRP bosses fired, CIO spies too
Parliament: 11 G40 ministers, MPs fired
MDC-T’s Gutu scoffs at party HQ ban
MORE NEWS
SOE DEBATE: Privatise most parastatals
‘Mobile money tax will get dodger vendors’
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Tendai Ndoro special - says Ajax coach
Zim cricket official charged with fraud
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Inflation down 0.62 percent: ZimStat
19/08/2013 00:00:00
by Business Reporter
 
 
RELATED STORIES
Inflation eases 0.42 percent, Zimstats
Zim meets December inflation target
October inflation reaches 3.38 percent
Inflation quickens to 4.3 percent
Import duties drive up food prices
Cost of living up 8 percent
Inflation eases to 3.2 percent
Tourists grab trillion-dollar souvenirs
Inflation slows to 4,1 percent

THE National Statistics Agency (Zimstats) has said the country’s inflation for July fell 0,62 percentage points to 1,25 percent from 1,87 percent in June as a result of the constant drop in the aggregate demand.

Month-on-month was at -0,38 percent, shedding 0,25 percentage points from -0,13 percent. Food and non-alcoholic month-on-month was at -1,14 percent, shedding 0,81 percentage points from -0,33 percent in June.

The month-on-month non-food inflation was at -0,004 percent, losing 1,11 percentage points from 0,03 percent.

Inflation is this year forecast to close the year at 3,9 percent and 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.

Economists on Friday said inflation will most likely remain under control this year with underlying core inflation rates projected to trend sideways or down throughout most of 2013.

“The debt and confidence crisis will have a dampening effect on global economic performance and growth, which will in turn reflect in weak demand including imports. In addition, the growth dynamics in the local economy should only improve in the second half of the year at the earliest,” an economist said.

“Reflecting this subdued growth outlook over the next year or so, I forecast relatively stable inflation in the economy reaching 2,6 percent within the first half. When demand is generally weak, as is the forecast, companies will cut their prices and the inflation rate will decline,” added the economist from the Reserve Bank of Zimbabwe.

Some analysts said whilst s inflation was not trending downwards, the decline might not be sustainable.

They said there is a risk that whilst inflation seems to be slowing down, the trend will sharply reverse given the fact that Zimbabwe this year will remain a heavy food importer.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker