The year-on-year inflation rate for the month of January gained 0,29 percentage points to -2,19% from the December rate of -2,47%, latest figures from the Zimbabwe Statistical Agency (ZimStat) have shown.
BY BUSINESS REPORTER
“This means that prices as measured by the all-items Consumer Price Index decreased by an average of -2,19 percentage points between January 2015 and January 2016,” Zimstat said.
The year-on-year inflation for food and non-alcoholic beverages inflation which are prone to transitory shocks stood at -3,96% whilst the non-food inflation rate was -1,34%.
The month-on-month inflation rate in January 2016 was -0,05% gaining 0,06 percentage points on December 2015 rate of -0,11%.
Inflation has remained in the negative territory since the fourth quarter of 2014, a reflection of the constraining effect of tight liquidity conditions.
In his monetary policy statement, Reserve Bank of Zimbabwe governor John Mangudya said the central bank was committed to addressing negative inflation by plugging leakages of liquidity from the economy.
More than $1,8 billion was externalised by individuals and corporates last year, draining the country of liquidity, according to statistics from the central bank.
“Circulating this liquidity within the national economy has a great multiplier effect and has a positive contribution to boosting aggregate demand,” Mangudya said.