Zimbabwe inflation continues to rise, hits 0.48 percent

Zimbabwe inflation continues to rise, hits 0.48 percent
Published: 15 May 2017 (300 Views)
Zimbabwe's year on year inflation rate continued to rise in April and stood at 0.48% after gaining 0.27% on the March rate, latest data from Zimbabwe National Statistics Agency (Zimstat) has shown.

Zimbabwe slipped out of deflation in February after year-on-year inflation for that month stood at 0,06%, after gaining 0,71% on the January rate. In January, year-on-year inflation was -0,65%.

"The month on month inflation rate in April 2017 was 0.05% gaining 0.02% on the March 2017 rate of 0.03%," said Zimstat.

The main items which registered high price surges were education, vegetables, major tools and equipment, gas, liquid fuels, accommodation and other personal effects.

Zimbabwe slipped into deflation in September 2014 when the inflation rate went below zero.

Analysts also say inflationary pressures will continue to increase as Government is constantly running a budget deficit and hiding inflation in the Treasury Bills that have been issued unsustainably.

In his 2017 Monetary Policy Statement, central bank governor John Mangudya said inflation was expected to move into positive territory in 2017 for the first time since September 2014, on the back of anticipated increase in international oil prices and domestic sector recovery.

"There are strong indications that oil supply will fall on the global market, following the agreement by oil producing nations to cut production in 2017," he said then.

"This positive trajectory is expected to be reinforced by the general recovery of the economy in 2017 on account of the expected strong agricultural outturn, which is going to increase disposable income."

Mangudya said the bank was projecting inflation of around 1% to 2% in 2017.

Zimbabwe's annual inflation rate averaged 0.86% from 2009 until 2017, reaching an all-time high of 5.30% in May of 2010 and a record low of -7.50% in December of 2009.

Zimbabwe's controversial bond notes are seen driving inflation into the future and have already been blamed for rising inflationary pressures at the end of 2016.

The central bank introduced bond notes late last year, which it claimed was backed by a US$200 million Afreximbank facility, to ease the cash crisis that started ahead of the 2015 festive season.

- Byo24News

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zuma's Dubai exit plan

by Nicki Gules and Sipho Masondo | 28 May 2017 | 146 Views

Motion of no confidence tabled against Zuma at ANC meeting

by Tshidi Madia and Mahlatse Gallens, News24 | 28 May 2017 | 114 Views

Chigwedere still to grasp his censorship board role

by Staff Reporter | 28 May 2017 | 80 Views

Mphoko to seek economic investment in Russia

by Staff Reporter | 28 May 2017 | 73 Views

Children as young as four contract STI

by Staff Reporter | 28 May 2017 | 84 Views

Empower Bank to dole out loans to 40 000 youth's

by Staff Reporter | 28 May 2017 | 58 Views

PSL Sunday fixtures

by Alice Dube | 28 May 2017 | 80 Views

MDC-T youth stabbed by Zanu-PF youths

by Stephen Jakes | 28 May 2017 | 79 Views

No amount of legislation can stop piracy

by Robert Ndlovu | 28 May 2017 | 65 Views

Mutare urban groove artist drops single

by Farai Shawn Matiashe | 28 May 2017 | 54 Views

Sakubva woman, makes breakthrough at 53

by Farai Shawn Matiashe | 28 May 2017 | 84 Views

Local poet ventures into poetry recording

by Farai Shawn Matiashe | 28 May 2017 | 51 Views

Southern Africa's Angolan dream

by Staff reporter | 28 May 2017 | 64 Views

Council bosses in $2 million scandal

by Staff reporter | 28 May 2017 | 43 Views

Tsvangirai's daughter in tender scandal

by Staff reporter | 28 May 2017 | 68 Views

Zanu-PF political drama unravels in Bulawayo

by Staff reporter | 28 May 2017 | 63 Views

Zimbabwe's trade deficit narrows

by Staff reporter | 28 May 2017 | 56 Views

NRZ wagons turned into 'brothels'

by Staff reporter | 28 May 2017 | 56 Views

Drinking our own urine and sleeping with snakes

by Staff reporter | 28 May 2017 | 95 Views

Bona, don't let them take us back to Stone Age

by Mtandazo Dube | 28 May 2017 | 72 Views

Mphoko to meet Putin

by Staff reporter | 28 May 2017 | 50 Views

Govt withdraws student funding

by Staff reporter | 28 May 2017 | 58 Views

Call for tougher action on Zanu-PF factionalism

by Staff reporter | 28 May 2017 | 50 Views

Mathias Mhere wails over debt

by Staff reporter | 28 May 2017 | 31 Views

Army boss hijacked, murdered

by Staff reporter | 28 May 2017 | 42 Views

'Day time' prostitution rife in city

by Staff reporter | 28 May 2017 | 27 Views

Councillor in night club scam

by Staff reporter | 28 May 2017 | 25 Views

Mugabe comes tops at business awards

by Staff reporter | 28 May 2017 | 26 Views

Ugandan healer takes city by storm

by Staff reporter | 28 May 2017 | 24 Views

Fake Francis Nhema Facebook scam exposed

by Staff reporter | 28 May 2017 | 25 Views

Teacher caught kissing Grade 7 pupil

by Staff reporter | 28 May 2017 | 29 Views

Bosso's Akbay queries stoppage time

by Staff reporter | 28 May 2017 | 81 Views

Mugabe succession brawl turns bloody

by Staff reporter | 28 May 2017 | 41 Views

'Too early to talk about censorship,' says Chigwedere

by Staff reporter | 28 May 2017 | 27 Views