Zim Year on Year Inflation Up

“The year on year inflation rate for the month of August 2011 as measured by the all items Consumer Price Index stood at 3,5 percent, gaining 0,2 percentage points on the July 2011 rate of 3,3 percent,” ZimStats said in a statement released to the media.

“This means that prices as measured by the all items CPI increased by an average of 3,5 percentage points between August 2010 and August 2011.”

ZimStats said the monthly inflation rate for August was 0.1 percent compared to that of 0.3 percent in July.The rise in flation was necessiated by the rise in transport costs, education costs and miscelleneous goods and services.

 Finance Minister Tendai Biti presenting his mid-term budget said inflation will remain in single digits till the end of the year.

The introduction of the multiple currency system in the country reduced inflation from the all high over one billion  percent during the hyper-inflation days when the country used to use the Zimbabwean dollar.

Despite having lower inflation rate Zimbabwe still faces high unemployment rates of over 80 percent as the country is battling to secure foreign direct investment. An indigenisation law that requires locals to get at least 51 percent in all foreign owned companies has resulted in investors boycotting to invest in the country.