Inflation down even further

Zimbabwe’s year-on-year (y/y) inflation rate for the month of June 2013 as measured by the all items consumer price index stood at 1.87%, shedding 0.33 percentage points on the May 2013 rate of 2.2%. According to the Zimbabwe National Statistics Agency, y/y food and non-alcoholic beverages inflation – which is prone to transitory shocks – stood at 2.9% while the non-food inflation rate came in at 1.35%. The continued downward pressure on the rand has helped stabilise inflation in Zimbabwe, which imports most of its products from South Africa.

Zimbabwe’s inflation has also been kept down by relatively low domestic demand, as employment levels and productivity in the country remain dire. Zimbabwe is currently facing a liquidity crisis, failing to even pay for its elections and making demand for products very weak.

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