HomeBusinessFood, non-alcoholic beverages prices go down

Food, non-alcoholic beverages prices go down

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Prices of goods marginally decreased for the month of January compared to the same period last year, latest inflation figures have shown.

BY VICTORIA MTOMBA

Year-on-year inflation rate for the month of January 2015 as measured by the all-items Consumer Price Index (CPI) stood at -1,28% shedding 0,48 percentage points on the December 2014 rate of 0,80%.

“This means that prices as measured by all-items CPI decreased by an average of 1,28 percentage points between January 2014 and January 2015,”the Zimbabwe Statistical Agency said in a statement.

An official said prices have been decreasing mainly due to the fact that most products were being purchased from South Africa where they use the rand. This means that retailers have been making a profit when they exchange the US dollar to the rand, which has lost some of its value.

“If you have noticed most prices are going down, for instance a 2-litre Fanta bottle now costs between $2 and $2,20 depending on the shop. The US dollar is gaining value compared to the rand,” the official said.

The year-on-year food and non-alcoholic beverages inflation was prone to transitory shocks stood at -2, 74% while the non-food inflation rate was at -0,57 %.

The month-on-month inflation rate in January 2015 was -0,34% shedding 0,25 percentage points on the December 2014 rate of -0,09%.

This means that prices as measured by the all items CPI decreased at an average rate of 0,34% from December 2014 to January 2015.

The month-on-month food and non-alcoholic beverages inflation rate stood at 0,40% in January 2015, gaining 0,76 percentage points on the December 2014 rate of -0,36%. The month-on-month non-food inflation rate stood at -0,69%, shedding 0,73 percentage points on the December 2014 rate of 0,04%.

Annual inflation declined in 2014 to 0,2% from 1,6% in 2013 due to inflationary pressures on the back of cheaper imports.

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