Inflation Jumps by 2.5 Percent

“The year on year inflation rate (annual percentage change) for the month of May 2011 as measured by the all items Consumer Price Index (CPI) stood at 2.5 percent, shedding 0.2 percentage points on the April 2011 rate of 2.7 percent,” Zim Stats said.

“This means that prices as measured by the all items CPI increased by an average of 2.5 percentage points between May 2010 and May 2011. The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the same month in the previous year”, Zim Stats added.

Zimbabwe’s inflation stabilised in the last two years after the formation of the unity government of President Robert Mugabe and Prime Minister Morgan Tsvangirai. The stabilisation of the economy however was not paralled by investment.

However, unemployment is still hovering above 85 percent. Investors are still skeptical of Harare government as they still want guarantees that their investments will not be looted through government’s empowerment drive.

Food and non alcoholic beverages for the month of May was at 2.29 percent. The country still imports food from neighbouring countries without attracting customs duties, a sign that industry is yet to recover.

“The year on year Food and Non Alcoholic beverages inflation prone to transitory shocks stood at 2.29 percent whilst Non-food inflation stood at 2.60 percent. The month on month inflation rate (monthly percentage change) in May 2011 was 0.1 remaining unchanged on the April 2011 rate of 0.1 percent,” Zim Stats said.

Zim Stats said the month on month Food and Non Alcoholic Beverages inflation stood at “-0.07 percent in May 2011 shedding 0.59 percentage points on the April 2011 rate of 0.52 percent.” The month on month non-food inflation stood at 0.14 percent gaining 0.16 percentage points on the April 2011 rate of -0.02 percent, the organisation added.