Negative inflation persists as February CPI closes at -2,22 percent
THE country’s annual inflation for February shed 0,03 percentage points to -2,22 percent from the January rate of -2,19 percent as the South African rand continues to be under strain coupled with low aggregate demand.
According to figures released by the Zimbabwe National Statistics Agency, prices as measured by the all items CPI, decreased by an average of -2,22 percent between February 2015 and February 2016.
Annual inflation has remained in negative territory since October 2014.
Economists however say some factors might lead to increasing inflation; the extreme hot weather conditions as a result of the El Nino effect is expected to exert upward pressures particularly on prices of food items. And other factors could lead to lower than expected inflation. For example, the continued weakening of the South African rand against the US$, and weak aggregate demand in the economy.
The year on year food and non-alcoholic beverages inflation prone to transitory shocks stood at -4.04% while the non-food inflation rate was -1.35%.
The CPI for the month ending February 2016 stood at 96.92 compared to 97.02 in January 2016 and 99.12 in February 2015.
For the month on month inflation rate, February 2016 recorded -0.10%, shedding 0.05 percentage points on the January 2016 rate of -0.05%.
The month on month Food and Non Alcoholic Beverages inflation rate stood at -0.03% in February 2016, shedding 0.16 percentage points on the January 2016 rate of 0.13% while the month on month non-food inflation rate stood at -0.14%, shedding 0.01 percentage points on the January 2016 rate of -0.13%.
Negative inflation was recorded in most of the categories particularly on housing, water, gas and electricity. FinX
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette