The country’s annual percentage change for the last month stood at 2,9%, gaining 0,4% on the May rate of 2,5%. This means that prices as measured by the all items CPI increased by an average of 2,9 percentage points between June 2010 and June 2011.
At the same time, the year-on-year food and non-alcoholic beverages inflation prone to transitory shocks stood at 3,0% while non-food inflation stood at 2,78%. The month-on-month inflation rate in June 2011 was 0,2 gaining 0,1 on the May rate of 0,1 percent, which follows that the rate of change in prices as measured by the all items, CPI increased by an average of 0,2 percentage points from May to June 2011.
Trends, however, show that rising prices for food, non-alcoholic beverages, health, education and services by public utilities are the major drivers of Zimbabwe's inflation.
Food prices have of late become a major concern in view of a rise in international food prices. The United Nations Food and Agriculture Organisation (FAO)'s food price index, which covers prices of a basket of commodities, rose 1 percent to 234 points last month, up 39 percent compared with the same time last year and just below the record 238 points hit in February.
Rising inflation is also associated with the strengthening of the South African Rand against the United States dollar given local firms' extensive importation from that market. Zimbabwe's inflation has stabilised in recent months after increasing in January, peaking at 3,5%.
The relative stability in the rate, which is currently among the lowest in the region, means the country is on course to meet its annual inflation target of 4,5% by the end of the year.
The country's inflation rate has shown stability over the past three months, remaining unchanged at 2,7% between March and April and declining by 0,2% percentage points in May.
Post published in: Business Analysis