ZIMBABWE’S annual inflation for the month of October 2016 as measured by the all items consumer price index gained by 0,37 percent to -0,95 percent from September’s rate of -1,33 percent, the Zimbabwe National Statistics Agency has said.“This means that prices as measured by the all items CPI decreased by an average of -0,95 percent between October 2015 and October 2016,” said Zimstats yesterday.
Month-on-month, the inflation rate for October 2016 was 0,09 percent gaining 0,35 percent on September 2016 rate of -0,26 percent. This means that prices as measured by the all items CPI increased at an average rate of 0,09 percent from September 2016 to October 2016.
The year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 2,03 percent while the non-food inflation rate was -0,45 percent.
According to Zimstats figures, inflation rate for the month-on-month food and non alcoholic beverages stood at 0,40 percent in October 2016, gaining 0,46 percentage points on September 2016 rate of -0,06 percent.
Month-on-month, the non-food inflation rate stood at -0,05 percent, gaining 0,29 percent on the September 2016 rate of -0,34 percent.
Declines in prices of housing, household equipment, clothing and footwear, transport and furniture have since beginning of the year have continued to weigh down on the non-food inflation, which has remained negative in the course of the year.
According to Treasury, inflation is expected to remain broadly subdued sustained by weak South African rand against the United States dollar and fluctuations in commodity prices. Annual average inflation for the year is projected to be -0,4 percent, up from -2,4 percent recorded in 2015, according to the Mid-Year Fiscal Policy Statement.
Since last January, the economy has been in a deflationary mode on a myriad of challenges among them low industrial capacity utilisation, liquidity constraints, constrained fiscal space and low consumer spending.
However, the annual headline inflation has accelerated from -2,19 percent in January 2016 to -0,95 percent in October 2016.