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ZIMBABWE/INFLATIONBack
[Published: Tuesday July 21 2009]

 

Zimbabwe inflation rises in June

Harare, 20 July-(ANA)-Prices in Zimbabwe rose in June, ending four months of deflation that followed the scrapping of the local currency, the government said Monday.

After a decade of hyperinflation that soared into multiples of billions, Zimbabwe's government abandoned its currency in January.

The government now calculates inflation based on US dollar prices, which have been falling all year.

In June, the monthly inflation rate registered at 0.6 percent, against -1.0 percent in May.

Food prices, however, remained deflationary, with food and non-alcoholic beverages at -1.26 percent, against -0.84 percent in May, the Central Statistics Office said.

Non-food inflation was at 1.45 percent, compared with -1.05 percent for May.

Since trading in foreign currency was allowed, Zimbabwe's once-deserted shops are again fully stocked with food.

But even with food prices falling, few people can afford to buy food in a country where the unemployment rate is estimated at 94 percent.

Once a regional breadbasket, Zimbabwe's economy has shrunk more than 40 percent over the past three years.(ANA)

FA/ANA/20 July 2009---

 

 


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