Business / Economy
Zimbabwe's annual inflation declines to 2.20%
14 Jun 2013 at 13:23hrs | Views
Zimbabwe's year-on-year inflation rate for the month of May declined to 2.20% vs April 2.49% while month on Month in May was -0.21% versus -0.07% in April according to figures from ZimStat.
The continued pressure on the rand/US$ rate continues to exert negatively on the inflation rate coupled with the relatively low domestic demand.
Since 52% of Zimbabwe's trade – two-thirds of exports and 43% of imports – is with SA, Zimbabwe gains from cheaper imports from SA. As a result retail prices have been kept steady. On the other hand, the liquidity situation in the country remains constrained and as a result there is weak demand for goods and services. On the whole domestic price pressures remain subdued, aside from areas exposed to reduced government spending.
Since 52% of Zimbabwe's trade – two-thirds of exports and 43% of imports – is with SA, Zimbabwe gains from cheaper imports from SA. As a result retail prices have been kept steady. On the other hand, the liquidity situation in the country remains constrained and as a result there is weak demand for goods and services. On the whole domestic price pressures remain subdued, aside from areas exposed to reduced government spending.
Source - finx
