Zimbabwe inflation unchanged at -2.77%

Latest data from the Zimbabwe National Statistics Agency shows that August inflation was at -2.77%, remaining the same as in the previous month when rounded to two decimal places.

The August numbers also mark the tenth consecutive mark that inflation has been in the negative.  Same time last year, August inflation was in the positive at 0.15%.

Inflation is expected to close the year at least at minus 5%-7% if the Rand continues to weaken. With a stronger US dollar versus the Rand, import prices will continue facing downward pressures. As a result Zimbabwe is now importing deflation as imports which are largely purchased in US dollars are getting much cheaper in dollar terms. The volatility of the rand will mainly be reflected in the negative food and non-alcoholic beverages inflation.