Zimbabwe’s August inflation flat at -2,77 percent

Chinamasa & Mangudya

RBZ governor John Mangudya and finance minister Patrick Chinamasa

ZIMBABWE’S year-on-year inflation rate remained static at -2,77 percent in August, the Zimbabwe national statistics agency said on Wednesday.

Zimstat said the month-on-month inflation rate shed 0,36 percentage points on the July rate of 0,06 percent to -0,31 percent.
Inflation has continued its negative pattern for the last 12 months, where the rate of increase in the general price level continues to slowdown.
Inflation is expected to close the year at least at minus five percent if the Rand gets to 13-14. With a stronger US dollar versus the Rand, import prices will continue facing downward pressures. As a result Zimbabwe is now importing deflation as imports which are largely purchased in US dollars are getting much cheaper in dollar terms.