Business / Economy
Zimbabwe inflation falls to 2.7 percent
15 Apr 2011 at 12:43hrs | Views
Zimbabwe's inflation eased in March to 2.7 percent, down from 3.0 percent in February, thanks to lower prices for telecommunications and medicine, the Zimbabwe National Statistical Agency said on Friday.
Monthly inflation accelerated to 0.8 compared to 0.5 percent the previous month. Finance Minister Tendai Biti said in March inflation would end 2011 at 4.5 percent year-on-year but analysts warn the price index could be higher after a mid-season drought hit crops and raised the spectre of food shortages and higher food prices.
The southern African country suffered a decade of runaway prices amid hyperinflation.
The economy stabilised after the government abandoned the worthless local currency in 2009, allowing trade in US dollars and other major foreign currencies.
The formation of a power-sharing government in 2009 by the main political rivals President Robert Mugabe and Morgan Tsvangirai has also brought stability to the economy.
But foreign investors have maintained a wait-and-see stance amid concerns over new equity regulations which seek to give locals majority stakes in foreign-owned companies.
Monthly inflation accelerated to 0.8 compared to 0.5 percent the previous month. Finance Minister Tendai Biti said in March inflation would end 2011 at 4.5 percent year-on-year but analysts warn the price index could be higher after a mid-season drought hit crops and raised the spectre of food shortages and higher food prices.
The southern African country suffered a decade of runaway prices amid hyperinflation.
The formation of a power-sharing government in 2009 by the main political rivals President Robert Mugabe and Morgan Tsvangirai has also brought stability to the economy.
But foreign investors have maintained a wait-and-see stance amid concerns over new equity regulations which seek to give locals majority stakes in foreign-owned companies.
Source - ZimStats
