ZIMSTAT said the reduction in the rate of annual inflation means that prices, as measured by the all items consumer price index increased by an average of 2,5% points between May 2010 and May this year.
“The month on month inflation rate (monthly percent change) in May 2011 was 0, 1 remaining unchanged on the April 2011 rate of 0, 1%,” Zimstats said.
“This means the rate of change in prices as measured by the all items CPI remaining unchanged by an average of 0, 1% points from April 2011 to May 2011,” the agency said.
The IMF has also warned that the country could miss its 4,5% inflation target this year because of high fuel costs and rising wages.
Twelve-month inflation is forecast to reach about 7% by December 2011 on account of higher food and fuel prices as well as wage-driven.
The decision by the coalition government to ditch the Zimbabwe dollar helped curb hyperinflation and put the economy which had been in recession for more than a decade back on the path to recovery.
The country now has the lowest inflation in the region with the government expecting Gross Domestic Product to grow by 9,3% in 2011.
“This means the prices as measured by the all items consumer price index (CPI) increased by an average of 2,5% points between May 2010 and May 2011 ZIMSTAT said.
The International Monetary Fund (IMF) has warned that Zimbabwe faces a significant budget financing gap this year amid a highly uncertain economic outlook, making clear it was not about to resume lending to the country.
The IMF said the country’s budget was skewed by a massive public wage bill and not enough resources for social programmes for the poor and important infrastructure spending.
It said the short-term growth potential, especially in mining, was strong amid higher global commodity prices.
Post published in: Business