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NewsDay

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Inflation continues to decline

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Zimbabwe’s consumer inflation continued on a downward trend, closing the month of August at 3,63% year-on-year from 3,94% the previous month.

Zimbabwe’s consumer inflation continued on a downward trend, closing the month of August at 3,63% year-on-year from 3,94% the previous month.

Report by Business Reporter The decline in inflation ironically comes at a time when fuel prices on the domestic market have been on an upward trend.

  Figures released by the Zimbabwe National Statistical Agency on Monday showed that on a month-on-month basis inflation was at 0,18% from 0,23%.

  According to an African Development Bank monthly economic report for August, prevailing inflationary pressures emanate from the poor harvest in 2012, demand for rental accommodation and increasing utility prices.

  Official figures show that during the first half of 2012, annual inflation opened the year at 4,3% in January and maintained the same level in February before slowing down to 4% in March, April and May.

  “However, given that over 58% of Zimbabwe’s total imports originate from South Africa, the exchange rate and inflation developments in that country have implications on our economy and, therefore, have to be monitored and managed appropriately,” the government said in its mid-Term Fiscal Policy review.

  According to the Finance ministry in the last half of the year, the anticipated weakening of the rand against the US dollar and softening in international fuel prices, were expected to stabilise inflation prospects, containing it around 5%.