Year-on-year inflation falls

via Year-on-year inflation falls | The Herald November 18, 2014

ANNUAL inflation shed 0,09 percentage points on the September rate of 0,09 percent to minus 0,001 percent in October, official statistics show. This means prices, as measured by the all items consumer index, decreased by an average of 0,001 percent in the 12 months to October 2013.

“The year on year food and non-alcoholic beverages inflation prone to transitory shocks stood at minus 3 percent while non-food inflation rate was 1,59 percent,” the Zimbabwe National Statistical Agency reported.

The rate of inflation measures the magnitude of an increase or decrease in prices over a given period, usually at yearly or monthly intervals.

Monthly inflation rate in October stood at minus 0,11 percent, shedding 0,10 percentage points on the September rate of minus 0,01 percent. “This means that prices as measured by the all items CPI decreased at an average rate of 0,11 percent from September to October,” Zimstat said. Zimstat said monthly food and non-alcoholic beverages inflation stood at minus 0,24 percent in October after gaining 0,10 percentage points.

“The month on month non-food inflation stood at minus 0,04 percent, shedding 0,20 percentage points on the September rate of 0,15 percent.”

Economists contend that Zimbabwe continues to experience low levels of inflation due to tight liquidity, which has frozen price adjustments.

While some analysts attributed declining inflation to price correction, poor company results mean firms marked down prices to drive demand.

The annual inflation rate has continued to trend down since January (0,4 percent), hitting an all time low rate of minus 0,9 percent in March.

This contrasts sharply with the country’s all time high inflation rate which peaked at 231 million percent at the last official count in August 2008.