Maravi

(TALKZIMBABWE) Cost of living drops 8.8 p.c.

Cost of living drops 8.8 p.c.
Mon, 19 Oct 2009 10:20:00 +0000

MONTHLY inflation returned to negative figures last month, with the cost of living falling 0,5 percent, the Central Statistical Office reported yesterday, bringing the total drop in living costs to 8,8 percent for the first nine months of this year.

This corresponds to an annualised inflation rate of about -11,9 percent. Zimbabwe’s cost of living fell every month between January and May, or putting it another way monthly inflation was negative for those first five months.

There were small rises in the cost of living in June, July and August, with monthly inflation peaking at 1 percent in July, before falling in August and then the return to negative monthly inflation last month.

Falls in the price of food and non-alcoholic beverages led the decline last month, with these items dropping in price by an average of 1,2 percent thanks to seasonal falls in the prices of meat, of 1,3 percent, and vegetables, a whopping fall of 5,6 percent.

Food prices have been falling as more Zimbabwean manufacturers increase production of basic and intermediate foods, substituting for imported foods which are generally rising in price as the rand gains against the US dollar.

In January, most food on supermarket shelves was imported; now most non-luxury items are locally made and specialist Zimbabwean producers are making inroads into the luxury end of the market.

Transport, with costs falling 2,3 percent, communication (-0,9 percent) and clothing and footwear (-0,6 percent) also showed above average falls in prices while
Recreation and Culture (+4,0 percent) and restaurants and hotels (+3,0 percent) led the sectors that showed price rises.

Clothing, housing costs, furniture and alcohol and tobacco all fell slightly in cost, but by less than the average 0,5 percent, while health (+0,1 percent) and education (+0.6 percent) were the other two sectors that showed rises in costs.

The month on month rate of inflation stood at +0.4 percent in August 2009.

Labels: DEFLATION, INFLATION, ZIMBABWE

posted by MrK @ 4:13 PM