Zim’s an­nual in­fla­tion sheds -1,60pc

Chronicle (Zimbabwe) - - Business - Harare Bureau

ZIM­BABWE’S an­nual in­fla­tion for the month of July 2016, as mea­sured by the all Items Con­sumer Price In­dex, shed 0,24 per­cent­age points to -1,60 per­cent from June’s -1,37 per­cent, the Zim­babwe Na­tional Statis­tics Agency (Zim­stats) re­ported yes­ter­day.

This means prices as mea­sured by the all items CPI fell by an av­er­age -1,60 per­cent be­tween July last year and July 2016.

Month-on-month, the in­fla­tion rate in July wors­ened by 0,38 per­cent­age points to neg­a­tive 0,19 per­cent from June rate of 0,19 per­cent as the econ­omy con­tin­ues in a de­fla­tion­ary mode with com­pa­nies earn­ings soft­en­ing on lower ag­gre­gate de­mand.

“This means that prices as mea­sured by the all items CPI de­creased at an av­er­age rate of -0,19 per­cent from June 2016 to July 2016,” said Zim­stats.

The year on year food and non al­co­holic bev­er­ages in­fla­tion was -3,76 per­cent while non food in­fla­tion rate stood at -0,59 per­cent.

Statis­tics show that in­fla­tion rate for the food and non al­co­holic bev­er­ages on a month on month ba­sis shed 0,17 per­cent­age points in July 2016, from June rate of -0,35 per­cent.

The month-on-month non-food and al­co­hol bev­er­ages in­fla­tion rate was -0,03 per­cent, shed­ding 0,48 per­cent on the June rate of 0,44 per­cent.

The do­mes­tic econ­omy has been wad­ing through de­fla­tion due to the pre­vail­ing dif­fi­cult eco­nomic chal­lenges char­ac­terised by liq­uid­ity con­straints, low con­sumer spend­ing, strained fis­cal space and low ca­pac­ity util­i­sa­tion in in­dus­try, which has forced many com­pa­nies to down­size op­er­a­tions.

Gov­ern­ment, how­ever, re­cently in­tro­duced Statu­tory In­stru­ment 64 of 2016 which pro­hibits im­por­ta­tion of cer­tain prod­ucts that can be man­u­fac­tured lo­cally to al­low lo­cal com­pa­nies time and space to re­cap­i­talise, re­tool and ac­quire mod­ern tech­nolo­gies.

The sup­port mea­sure is ex­pected to pro­mote lo­cal pro­duc­tion, lo­cal con­sump­tion as well as en­hance eco­nomic ac­tiv­ity through var­i­ous value chains in­volved in the man­u­fac­ture of cer­tain prod­ucts.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.