ZIMBABWES year-on-year rate of inflation shedding off 0,6% on the July rate of 4,1% to 3,6% for the month of August official figures have shown.According to figures from the Zimbabwe Statistical Agency month-on-month inflation rate for the month of August remained unchanged on the July rate of -0,1%.
This means that prices have remained stable in the past three months enabling the annual rate of inflation to go down.
The decline in the rate of inflation has brought hope to the revival of the economy as inflationary pressures were threatening to derail economic gains of 2009 when the country introduced the multi-currency system.
During the first five months of the year, the inflation rate was on an upward trend but improved production in industries coupled with an increased capital inflow into the economy has helped ease inflationary pressures.
Zimbabwes inflation trends are also affected by the movement of the South African rand against the United States dollar.
Consumer Price Index for the month of August stood at 95,0 compared to 95,1 in July this year and 91,7 in August last year. This means that prices have remained almost the same when the multi-currency system was introduced last year.
During the same period, month on month food and non-alcoholic beverages inflation stood at -0,01% in August, gaining 0,02 percentage points on the July rate of -0,03%.
Zimstat also said the Food Poverty Line for an average of five people in August 2010 was US$146 and the Total Consumption Poverty Line (TCPL) for the same number of people was US$477.
This means that a family of five needs US$146 every month just for food and an additional US$331 for other expenses.
Food Poverty Datum Line (FPL) is the minimum consumption expenditure that ensures each household member can consume a minimum food basket representing 2 100kg calories.
An individual whose total consumption expenditure does not exceed the food poverty line is deemed to be very poor.
On the other hand, total consumption poverty line consists of non-food consumption expenditures and if any individual does not consume more than that is considered poor.
Average civil servants and some workers in the industry are earning below US$150 and they are deemed poor.
Consumption patterns have remained almost the same in the past three months as prices have remained the same.
Analysts also said that family sizes have also changed in the past decade with average families consisting of about three to four persons of different composites.
The national FPL for the month of August stood at US$29 meaning that minimum needs basket costs that much per person.
However the August FPL increased by 7,3% compared to the same period last year which stood at US$27.
The TCPL for Zimbabwe stood at US$95 per person in August 2010 representing a decrease of 5.28 percent when compared to July 2010 figure of US$101.
Post published in: Agriculture