Business / Economy
Zimbabwe's year-on year inflation rate for October tumbles
16 Nov 2011 at 05:31hrs | Views
THE year-on-year inflation rate for October fell marginally to 4,2 percent, shedding off 0,1 percent on the annual rate of inflation for September.
This allays fears that Government could miss its December 2011 inflation target of 4,5 percent projected in the 2011 National Budget Statement. Annual inflation threatened an upward spiral since Finance
Minister Tendai Biti, through his midterm budget statement presented in July, restored duty on selected basic products to allow local industry to recover. According to the Zimbabwe National Statistical
Agency's all items consumer index, prices increased by an average of 4,2 percent in the 12 months to October 2011. Zimstat said the month on month rate of inflation stood at 0,1 percent in October, shedding off 0,7 percent on the September rate of 0,8 percent.
Year- on- year food and non-alcoholic beverages inflation prone to transitory shocks stood at 3,68 percent while non-food inflation was 4,44 percent.
Inflation denotes the rate or magnitude by which prices increase over a given period either measure over a one-year period or on a monthly basis.
As such, while an increase in the rate of inflation reflects an increase in prices a decline in inflation does not necessarily mean that prices are falling.
Zimstat said month- on- month food and non-alcoholic beverage inflation stood at 0,08 percent in October 2011 from 0,42 percent in the prior month.
Monthly non-food inflation for October stood at 0,14 percent after shedding 0,86 percent on the previous month's monthly inflation rate of 1 percent.
Inflation has the effect of eroding the purchasing power of currency if increases in prices, rates and tariffs are not matched by similar increase in incomes.
Zimbabwe is prone to inflation threats from imported products as it imports a significant proportion of basic goods due to low industrial capacity.
Exchange rate movements between currencies of the country's major trading partners (source of imports) also bring inflation pressure to the country.
This allays fears that Government could miss its December 2011 inflation target of 4,5 percent projected in the 2011 National Budget Statement. Annual inflation threatened an upward spiral since Finance
Minister Tendai Biti, through his midterm budget statement presented in July, restored duty on selected basic products to allow local industry to recover. According to the Zimbabwe National Statistical
Agency's all items consumer index, prices increased by an average of 4,2 percent in the 12 months to October 2011. Zimstat said the month on month rate of inflation stood at 0,1 percent in October, shedding off 0,7 percent on the September rate of 0,8 percent.
Year- on- year food and non-alcoholic beverages inflation prone to transitory shocks stood at 3,68 percent while non-food inflation was 4,44 percent.
Inflation denotes the rate or magnitude by which prices increase over a given period either measure over a one-year period or on a monthly basis.
Zimstat said month- on- month food and non-alcoholic beverage inflation stood at 0,08 percent in October 2011 from 0,42 percent in the prior month.
Monthly non-food inflation for October stood at 0,14 percent after shedding 0,86 percent on the previous month's monthly inflation rate of 1 percent.
Inflation has the effect of eroding the purchasing power of currency if increases in prices, rates and tariffs are not matched by similar increase in incomes.
Zimbabwe is prone to inflation threats from imported products as it imports a significant proportion of basic goods due to low industrial capacity.
Exchange rate movements between currencies of the country's major trading partners (source of imports) also bring inflation pressure to the country.
Source - HeraldOnline
