Do­mes­tic lend­ing up 1.7%

Chronicle (Zimbabwe) - - Front Page - Bianca Mlilo

THE Re­serve Bank of Zim­babwe (RBZ) says do­mes­tic lend­ing in­creased by 1,6 per­cent from May to June this year.

Although the cen­tral bank did not ex­plain the rea­sons be­hind this de­vel­op­ment, it high­lighted in its eco­nomic re­view for the pe­riod that an­nual non-food in­fla­tion had also in­creased.

“On a monthly ba­sis, do­mes­tic credit in­creased by 1,6 per­cent, from $5 627.8 mil­lion in May 2016 to $5 719.6 mil­lion in June 2016,” said RBZ.

“Dur­ing the pe­riod un­der re­view, year-on-year credit to the pri­vate sec­tor de­clined by 4.5 per­cent to $3 571.6 mil­lion in June 2016, from $3 741.7 mil­lion in June 2015.”

Month-on-month credit to the pri­vate sec­tor, said the cen­tral bank, de­creased by 0,7 per­cent in June 2016.

RBZ also said an­nual non-food in­fla­tion stood at 0,1 per­cent in June 2016, up from 0,5 per­cent in May 2016.

“This was largely at­trib­ut­able to in­creases in ed­u­ca­tion.

‘‘The cost of ed­u­ca­tion has in­creased tremen­dously dur­ing the course of last year with univer­sity fees ris­ing by 50 per­cent and other tu­ition fees by over 100 per­cent,” said RBZ.

“Even if the gen­eral price level is on a de­cline the hike in ed­u­ca­tion fees af­fects house­holds neg­a­tively.

“Month-on-month in­fla­tion stood at 0,19 per­cent in June 2016 rep­re­sent­ing a 0,4 per­cent in­crease from -0,24 per­cent reg­is­tered in May 2016. The in­crease was largely at­trib­ut­able to gains in non-food in­fla­tion.”

RBZ said monthly non-food in­fla­tion had also in­creased from 0,12 per­cent recorded in May 2016, to 0,44 per­cent in June 2016.

This, ac­cord­ing to the cen­tral bank, was un­der­pinned by price in­creases in ed­u­ca­tion, restau­rants and ho­tels, health and al­co­holic bev­er­ages.

Monthly food in­fla­tion also gained by 0,14 per­cent to close at 0,35 per­cent dur­ing the same pe­riod, said the cen­tral bank.

This was on ac­count of in­creases in oils and fats, non-al­co­holic bev­er­ages, and fish and sea food. — @Bian­caMlilo

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