ZIMBABWE’s inflation slowed by 0,62 percentage points to 1,25% in July down from 1,87% recorded in the previous month, due to a drop in the demand for goods and services during the period.
According to latest statistics released by Zimbabwe National Statistics Agency (Zimstat), the year-on-year food and non-alcoholic beverages inflation was recorded at 1,74% while non-food inflation stood at 1%.
The month-on-month was at -0,38% shedding 0,25 percentage points from -0.13% recorded in the previous month.
Food and Non Alcoholic month on month stood at -1,14% shedding 0,81 percentage points from -0,33% registered in June.
The month-on-month non-food inflation was at -0,004% dropping by 1,11 percentage points from the 0,03% recorded in the previous months.
The consumer price index which is the measure of changes in the price level of consumer goods and services purchased by household in the period, dropped to 100,4 down from 100,81 recorded in June.
Zimbabwe’s year-on-year inflation is expected to slow down to 3,9% from the projected 5%, due to the weakening rand.
The softening of the South African rand since the beginning of the year has helped Zimbabwe maintain a downward trend as it imports close to 60% goods from its southern neighbour.
Analysts said the depreciation of the South African currency was a result of the unending job disputes in the mining sector, particularly among platinum producers — a development that has seen output declining.
The country’s inflation is predicted to decline further as the economy slows down and local prices track the declining value of the South African rand, resulting in generally decreasing local prices.
Zimbabwe is largely dependent on imports from South Africa.