Zim annual rate of inflation down

ZIMBABWE'S annual rate of inflation shed 0,29 percentage points on the April rate of 2,49 percent to 2,20 percent in May, the

Zimbabwe National Statistics Agency has said.

This means prices, as measured by the all-items consumer price index, increased by an average of 2,20 percentage points between May 2012 and May 2013.

But the fall in the rate of inflation does not imply a fall in the price of goods. Rather, it implies a decrease in the rate or magnitude by which prices increased over the past 12 months.

"The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the same month in the previous year," said ZimStat.

"The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 3,54 percent while the non-food inflation rate was 1,54 percent."

The month-on-month inflation rate in May 2013 shed 0,14 percentage points from April's figure of -0,07 percent to close at -0,21 percent. Monthly food and beverages rate of inflation for May 2013 stood at -0,28 percent, shedding 0,16 percentage points on the April rate of 0,44 percent.

Month-on-month non-food inflation stood at -0,17 percent, shedding 0,32 percentage points on the April rate of 0,11 percent.

The consumer price index for the month ending May 2013 stood at 100,94 compared to 101,15 in April 2013 and 98,77 in May 2012.

ZimStat has also said it is now publishing the consumer price index with new weights and new classification, in accordance with international guidelines with effect from January 2013.