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BizDay Zimbabwe

Non-food items push inflation

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NON-FOOD inflation rose 1,44 percent in the year to August, pushing up annual inflation to 1,28 percent, a report from the Zimbabwe National Statistics Agency shows.
According to ZimStat, non-food items contribute 66,47 points to total weights of the Consumer Price Index while food and non-alcoholic beverages accounted for 33,53 points.

“The year-on-year food and non-alcoholic beverage inflation prone to transitory shocks stood at 0,94 percent while the non-food inflation rate was 1,44 percent.” Food and non-alcoholic basket includes items such as bread and cereals, fish and sea food, milk, eggs, cheese, fruit, vegetables, oils, fats, sugar, jam, honey, chocolate, mineral waters, tea, soft drinks and fruit and vegetable juices. The non-food and alcoholic beverages basket is made up of spirits, wine, beer, tobacco, clothing and footwear, housing, water, electricity, gas and other fuels.

This also includes transport, communication, recreation and culture, restaurants and hotels, education, furniture and equipment and health services.

The latest inflation report denotes that the price of non-food and alcoholic beverages in Zimbabwe rose the fastest between August 2012 and August 2013.

Inflation rate reflects the magnitude of increases in prices of goods and services in an economy over a given period, usually measured over a month or a year.

Zimbabwe’s 1,28 percent inflation rate ranks with the least inflation rates globally and comes only second to Mali, which is in deflation, on the African continent.

The country’s month-on-month inflation rate in August stood at minus 0,15 percent after gaining 0,23 percentage points on the July rate of 0,38 percent.

ZimStat said the monthly food and alcoholic beverages inflation gained 0,23 percent to minus 0,90 percent in August 2013 while the non-food monthly inflation rate stood at 0,23 percent, reflecting 0,23 percent gain on the July rate.

Education at 8,83 percent, transport 5,04 percent and health, communication, tobacco, housing, water, electricity and gas clothing and footwear and alcoholic beverages contributed the most to annual non-food inflation.

Zimbabwe has maintained low inflation since dollarisation in February 2009 and Government has projected inflation rate of less than 5 percent by year end.

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