Business / Economy
Zimbabwe has the lowest inflation in the region
21 Jun 2011 at 04:09hrs | Views
Zimbabwe, which a few years ago had the world's highest inflation, now has the most efficient trends in SADC and COMESA.
This was reflected in the newly launched COMESA Harmonized Consumer Price Index monthly bulletin.
Zimbabwe had an inflation rate of -0.5 percent for April compared to the prior month, the with its annual inflation rate for that month being 2.7 percent.
The bulletin shows that states that contributed to the Interim HCPI-COMESA registered the following inflation rates in April 2011 compared to March 2011: Burundi +2.5 percent; DRC +1.3 percent; Egypt +1.5 percent; Ethiopia -2.1 percent; Kenya +3.1 percent; Madagascar -0.7 percent; Malawi -1.9 percent; Mauritius +0.1 percent; Rwanda +2.4 percent; Seychelles +0.2 percent; Sudan +1.3 percent; Swaziland +1.1 percent; Uganda +3.0 percent; and Zambia -1.6 percent.
The stabilization of Zimbabwe's macro-economic fundamentals, especially in respect of inflation is largely attributable to the introduction of the multi-currency system in February 2009.
Although this has brought financial stability, it has simultaneously ushered in new challenges.
For instance, it is now essential that the authorities keep a tight rein on inflation at below six percent, while keeping an eye on developments on the United States inflation figures.
The use of various foreign currencies means the government has naturally disposed of its ability to determine and control the direction of the economy through monetary policy.
Specifically for Zimbabwe, inflation movement is under constant threat of monetary and commodity shocks in neighboring South Africa.
At a much broader level, economic analysts have predicted that global inflation trends could be negatively influenced by rising fuel prices, rising food prices (both in US$ terms), and wage increases.
The HCPI bulletin shows that the COMESA region's month-on-month inflation rose by 1.2 percent in April 2011 compared to 2.4 percent in March.
Total inflation in COMESA is largely driven by food prices given the relative food share of 510.23 parts per 1 000, food prices tend to be volatile due to transitory shocks.
Total inflation was 1.6 percent in January 2011, while food inflation stood at 2.3 percent.
Both rates fell in February to 0.1 percent for total and 0.2 percent for food inflation.
March saw the rates rising sharply to 2.4 and 4.5 percent respectively for total and food inflation.
In April, both eased to 1.2 and 2.1 percent for total and food inflation respectively.
This was reflected in the newly launched COMESA Harmonized Consumer Price Index monthly bulletin.
Zimbabwe had an inflation rate of -0.5 percent for April compared to the prior month, the with its annual inflation rate for that month being 2.7 percent.
The bulletin shows that states that contributed to the Interim HCPI-COMESA registered the following inflation rates in April 2011 compared to March 2011: Burundi +2.5 percent; DRC +1.3 percent; Egypt +1.5 percent; Ethiopia -2.1 percent; Kenya +3.1 percent; Madagascar -0.7 percent; Malawi -1.9 percent; Mauritius +0.1 percent; Rwanda +2.4 percent; Seychelles +0.2 percent; Sudan +1.3 percent; Swaziland +1.1 percent; Uganda +3.0 percent; and Zambia -1.6 percent.
The stabilization of Zimbabwe's macro-economic fundamentals, especially in respect of inflation is largely attributable to the introduction of the multi-currency system in February 2009.
Although this has brought financial stability, it has simultaneously ushered in new challenges.
For instance, it is now essential that the authorities keep a tight rein on inflation at below six percent, while keeping an eye on developments on the United States inflation figures.
The use of various foreign currencies means the government has naturally disposed of its ability to determine and control the direction of the economy through monetary policy.
At a much broader level, economic analysts have predicted that global inflation trends could be negatively influenced by rising fuel prices, rising food prices (both in US$ terms), and wage increases.
The HCPI bulletin shows that the COMESA region's month-on-month inflation rose by 1.2 percent in April 2011 compared to 2.4 percent in March.
Total inflation in COMESA is largely driven by food prices given the relative food share of 510.23 parts per 1 000, food prices tend to be volatile due to transitory shocks.
Total inflation was 1.6 percent in January 2011, while food inflation stood at 2.3 percent.
Both rates fell in February to 0.1 percent for total and 0.2 percent for food inflation.
March saw the rates rising sharply to 2.4 and 4.5 percent respectively for total and food inflation.
In April, both eased to 1.2 and 2.1 percent for total and food inflation respectively.
Source - TST
