Inflation up to -2,19%

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%.

John Mangudya Reserve Bank of Zimbabwe governor John Mangudya

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.

5 Responses to Inflation up to -2,19%

  1. reserve February 17, 2016 at 6:40 am #

    is there a need of a reserve bank in Zimbabwe, since we don’t hv a currency.

  2. Sly February 17, 2016 at 7:01 am #

    Ths is jst simple, hapana kumbo extenalizer currency. We hve a trade deficiet of 1,8billion anually n our gdp is 12billion so in 6yrs time they wont b any money circulating bcoz of huge trade deficiet caused by some unnecessary imports

    • aeaweg February 17, 2016 at 2:20 pm #

      The 1.8billion trade deficit is being off set by 1.8billion diaspora remittances.

  3. Oto February 17, 2016 at 12:20 pm #

    Call it artificial inflation, we dont have a currency. ..$? Nxxc

  4. Levi February 17, 2016 at 4:34 pm #

    Tell us whose currency are we externalising, does it belong to you or to USA. How can you tell Obamas he is externalising his own currency.

© 2016 NewsDay Zimbabwe. All Rights Reserved.

DMMA logo