Zimbabwe inflation falls to -0.80%

Zimbabwe's consumer prices fell to 80 basis points or 0.8% in December on a year-on-year basis compared to a 78 basis points or 0.78% decline in November, the statistical agency Zimstats said on Thursday.

On a month-on-month basis, prices eased by 60 basis points or 0.6% in December compared to the 69 basis points or 0.69% in the previous month.

The year on year food and non-alcoholic beverages inflation remained in the negative at -270 basis points or -2.70%, whilst the Non-food inflation rate was 4 basis points or 0.04%.
 
The month on month Food and Non-Alcoholic Beverages inflation stood at -36 basis points or -0.36% in December 2014, shedding 13 basis points or 0.13% on the November 2014 rate of -11 basis points or -0.11%. The month on month non-food inflation stood at -4 basis points or -0.04%, shedding 1% on the November rate of 96 basis points or 0.96%.

The country continues to suffer from structural flaws and overall aggregate demand continues to weaken as company shutdowns intensify.

With government failing to pay most of its workers the December bonus payouts in time consumers have been directing most of their spending to immediate necessities.

The CPI for the month ending December 2014 stood at 99.53 compared to 99.62 in November 2014 and 100.33 in December 2013.