Inflation edges up in August

THE year on year inflation rate gained 0,54 percentage points to 4,83% in August, the Zimbabwe National Statistical Agency (ZimStat) said yesterday.

BY FIDELITY MHLANGA

The increase was mainly driven by food and non-alcoholic beverages inflation which stood at 7,52 % while the non-food inflation rate was 3,58%.

On a monthly basis, the inflation stood at 0,39% after shedding 0,59percentage points on the July 2018 rate of 0,98 %.

“The month on month food and non-alcoholic beverages inflation rate stood at 0,62% in August 2018, shedding 0,12 percentage points on the July 2018 rate of 0,74%.

The month on month non-food inflation rate stood at 0,28%, shedding 0,81 percentage points on the July 2018 rate of 1,09%,” said Zimstat.

This comes after a wave of price increases on most commodities on the market, perpetuated mainly by a lack of foreign currency which has pushed businesses to source costly forex on the parallel market.

After three years of deflation since February 2014, Zimbabwe experienced a resurgence in inflation in February 2017 after year-on-year inflation for the month rose to 0,06% from the January rate of — 0,65%.

The annual inflation opened the 2018 year at 3,52% and tumbled to 2,68% in February and March before gaining to 2,71% in April and May.

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