August year-on-year inflation remains flat Mr Luxon Zembe
Mr Luxon Zembe

Mr Luxon Zembe

Business Reporter
ZIMBABWE’S year-on-year inflation has remained constant at 0.14 percent in August, official data from the Zimbabwe National Statistics Agency (Zimstat) show.

The month-on-month inflation rate, however, rose by 0.23 percentage points to -0.13 from -0.36 percent in July.

“The year on year inflation rate for the month of August 2017 as measured by the all-items Consumer Price Index (CPI) stood at 0.14 percent, remaining constant on the July 2017 rate of 0.14 percent,” said Zimstat.

This means that prices as measured by the all-items CPI increased by an average of 0.14 percentage points between August last year and August 2017.

“The month on month inflation rate in August 2017 was -0.13 percent gaining 0.23 percentage points on the July 2017rate of -0.36 percent,” said Zimstat.

Zimstat indicated that the year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 1.76 percent while the non-food inflation rate was -0.60 percent.

Economic analyst Mr Luxon Zembe said the rate of inflation remained flat last month due to the cash crisis.

“Inflation is driven by changes in prices of goods and services.

“Presently, consumer demand is depressed because there is no money to spend and if people had a lot of money prices would go up,” he said.

Mr Zembe said due to the prevailing cash crisis people were beginning to prioritise what they buy.

Going into year end, he said, people were beginning to preserve the cash they have for the festive season.

“Towards the end of the year going into the festive season, you will see an upsurge in the rate of inflation, but the increase will not be excessive because of the prevailing economic climate.

“Businesses will also increase prices of goods and services trying to capitalise on the upsurge in consumer demand caused by the festive season,” said Mr Zembe.

Zimbabwe’s rate of inflation is expected to average 1.1 percent by the end of year.

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