Non-food inflation surges

Published: 16 September 2013

NON-FOOD inflation rose 1,44 percent in the 12 months to August 2013, pushing up annualized inflation for the period by 0,03 percent to 1,28 percent, the August report from the Zimbabwe National Statistics Agency shows.

According to ZimStat, non-food items contributed 66,47 points to total weights of the CPI while food and non-alcoholic beverages accounted for 33,53 points.

"The year on year food and non-alcoholic beverage inflation prone to transitory shocks stood at 0,94 percent while non-food inflation rate was 1,44 percent."

Food and non-alcoholic basket CPI items include bread and cereals, fish and sea food, milk, eggs, cheese, fruit, vegetables, oils, fats, sugar, jam, honey, chocolate, mineral waters, tea, soft drinks and fruit and vegetable juices.

The Non-food and alcoholic beverages basket is made up of spirits, wine, beer, tobacco, clothing and footwear, housing, water, electricity, gas and other fuels.

It also includes transport, communication, recreation and culture, restaurant and hotels, education, furniture and equipment and health services.

The latest inflation report denotes that the price of non-food and alcoholic beverages in Zimbabwe rose the fastest between August 2012 and August 2013.

Inflation rate reflects the magnitude of increase in prices of goods and services in an economy over a given period, which is usually a month or year.

Zimbabwe's 1,28 percent rate ranks among countries with the least inflation rate globally and comes second to Mali, which is deflation, on the African continent.

The country's month on month inflation rate in August 2013 was minus 0,15 percent after gaining 0,23 percentage points on the July rate of 0,38 percent.
- herald

Tags: Inflation,