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.
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.
Source - finx
