Zimbabwe inflation hits two-year high but still negative

Zimbabwe inflation hits two-year high but still negative
Published: 16 February 2017 (96 Views)

Zimbabwe's inflation continued on its upward trend to reach its highest level in more than 24 months in January although is still negative according to data released yesterday by Zimstat, as consumers spent more for bread, cereal, fish, sea food, oils and fats and other products.

"The year-on-year inflation rate for the month of January 2017 stood at -0,65 percent, gaining 0,28 percentage points on the December 2016 rate of -0,93 percent", said the Agency.

Inflation last averaged -0,2 percent in 2014 and has been on an upward spiral since July 2016 when it recorded a relatively lower rate of -1,6 percent.

Prices of bread and cereals, which have a weight of 10,98 percent to the total consumer price index, surged by 1,86 percent. Fish and sea food prices also rose by 1,1 percent.

"The month-on-month inflation rate in January 2017 was 0,23 percent gaining 0,18 percentage points on the December 2016 rate of 0,06 percent", said Zimstat.

Costs of goods and services have also been rising over the past few months as a result of increased greenback shortages which forced some economic agents to resort to the black market where they pay a premium of up to 25 percent to get the erratic US dollars. The premium is then passed to the final consumer, which increases the general price level.

Gas prices however took a -9,17 percent dip, with actual rental for housing falling by -6,39 percent, while the prices of fruit also fell by -7,97 percent.

As the Government is targeting to increase aggregate production in the economy this year, driven by the 2017 National Budget theme - "Pushing production frontiers across all sectors of the economy" - it is important that more concrete supply side interventions be put in place to abet the operations of productive sectors.

The country's month-on-month food and non-alcoholic beverages inflation rate also significantly jumped up to 0,80 percent in January 2017, gaining by 0,42 percent on the December 2016 rate of 0,38 percent. - .

- Wires

 0

You May Like These Videos

Comments

| Comment With Facebook Submit

There are no comments.

Business Big Reads

Zimbabwe inflation hits two-year high but still negative

by Staff reporter | 16 February 2017 | 96 Views

RBZ caps bank charges

by Staff reporter | 16 February 2017 | 147 Views

Banking sector profits jump to $181 million

by Staff reporter | 16 February 2017 | 104 Views

WorldRemit, Zimpost launch instant money transfers to Zimbabwe

by Agencies | 15 February 2017 | 131 Views

South African banks manipulated the US dollar - Rand rate

by Staff reporter | 15 February 2017 | 185 Views

Unilever Zimbabwe to slash salaries by 50%

by Staff reporter | 15 February 2017 | 128 Views

Strive Masiyiwa company acquires SA's Neotel

by Staff reporter | 15 February 2017 | 158 Views

fastjet Zimbabwe collects $2.7m airport taxes

by Staff reporter | 15 February 2017 | 101 Views

Air Zimbabwe to get new planes

by Staff reporter | 14 February 2017 | 145 Views

Strong dollar threatens Zimbabwe exports

by Staff reporter | 14 February 2017 | 103 Views

Zesa sues Ingwebu Breweries over debt

by Staff reporter | 13 February 2017 | 124 Views

Ingwebu Breweries to be privatised

by Staff reporter | 13 February 2017 | 111 Views

Controversy rocks Econet meeting

by Staff reporter | 11 February 2017 | 174 Views

Zimbabwe 'inflation' imported, says RBZ

by Staff reporter | 10 February 2017 | 186 Views

Fastjet suspends Victoria Falls-Johannesburg route

by Staff reporter | 10 February 2017 | 193 Views

Chirume faces ZSE chop, sent on forced leave

by Staff reporter | 09 February 2017 | 193 Views

Cash crunch 'haunts' Mangudya

by Staff reporter | 09 February 2017 | 219 Views

Zimbabwe mobile operators lose over $26 million in 10 months

by Staff reporter | 08 February 2017 | 289 Views

Tsvangirai promise to re-open Ziscosteel

by Staff reporter | 08 February 2017 | 162 Views

ZSE sent CEO on leave over Econet saga

by Staff reporter | 07 February 2017 | 169 Views

StanChart cancels visa services for Zimbabweans

by Staff reporter | 07 February 2017 | 206 Views

ZSE plots to crack whip on defiant Econet

by Staff reporter | 06 February 2017 | 134 Views

Econet shareholders approve rights issue

by Staff reporter | 06 February 2017 | 156 Views

Econet EGM going ahead despite

by Staff reporter | 02 February 2017 | 335 Views

Storm over Econet $130 million rights offer

by Staff reporter | 02 February 2017 | 184 Views

Econet loses 400 000 subscribers

by Staff reporter | 02 February 2017 | 255 Views

Air Zimbabwe struggling to pay IATA debt

by Staff reporter | 02 February 2017 | 197 Views

DStv parent eyes Zimbabwe mobile firms

by Staff reporter | 01 February 2017 | 242 Views

Zimplats revenue up 41%

by Staff reporter | 01 February 2017 | 211 Views

Vacancy - Junior Forex Dealer

by GroCapital Financial Services | 31 January 2017 | 225 Views

Zimbabwe has over-valued US$ exchange rate

by Staff reporter | 31 January 2017 | 178 Views

Zimbabwe should put in place a comprehensive economic reform plan

by Staff reporter | 31 January 2017 | 166 Views

Boost for Alaska – Karoi power project

by Alice Dube | 30 January 2017 | 198 Views

Matabeleland mines scoop top awards

by Business Reporter | 30 January 2017 | 345 Views

Zimbabwe has only $300 million in circulation

by Staff reporter | 29 January 2017 | 210 Views

Econet shareholders lose $100 million in 10 days

by Staff reporter | 29 January 2017 | 201 Views

Econet summoned over contentious issues

by Staff reporter | 27 January 2017 | 208 Views

Zimbabwe industry to push for adoption of Rand

by Staff reporter | 27 January 2017 | 278 Views