April inflation rate at -1,64 percent – Zimstat
ZIMBABWE’S annual inflation for the month of April stood at -1,64 percent, after gaining 0,66 percentage points on the March rate of -2,31 percent, the Zimbabwe Statistical Agency (Zimstat) said on Monday.
On a monthly basis, the inflation rate was at -0.21 percent, after shedding 0.10 percentage points on March rate of -0.12 percent, the.
“The year on year food and non-alcoholic beverages inflation prone to transitory shocks stood at –4,02 percent whilst the Non-food inflation rate was -0,51 percent,” said Zimstat.
Zimstat said the month on month food and non-alcoholic beverages inflation rate stood at –0,51 percent in April 2016, shedding 0,37 percentage points on the March 2016 rate of -0,13 percent.
Last week the Zimbabwe Economic Policy Analysis and Research Unit (Zeparu) projected annual inflation to increase marginally in the second quarter of 2016 averaging -1,12 percent to about -1 percent.
“We expect annual inflation to increase marginally in the second quarter of 2016 averaging -1,12 percent. Thus inflation is forecasted to increase marginally from -2,3 percent in March 2016 to about -1 percent in June 2016. We expect that any deviations from the forecast to be within the range of the upper and lower limit at the 95 percent confidence level,” Zeparu said
Month on month non-food inflation rate stood at -0,08 percent in April, gaining 0,03 percentage points on the March 2016 rate of –0,11 percent.
“The CPI for the month ending April 2016 stood at 96,60 compared to 96,81 in March 2016 and 98,22 in April 2015,” Zimstat said.
According to a report by BMI Research, a Fitch Group company on Zimbabwe Country Risk released on Monday, inflationary pressures are seen returning to the Zimbabwean economy before year-end 2016, on the back of an increase in the money supply as a result of the government’s policy to introduce bond notes and the re-establishment of relations with multilateral lenders.
“We have revised our expectations for inflation on the back of a planned increase in the money supply through the printing of money and reestablishment of relations with multilateral lenders. We now expect inflation to reach 1,0 percent after two years of deflationary conditions,” the report says.
According to latest Reserve Bank of Zimbabwe (RBZ) monthly report, annual broad money supply growth rate increased to 9,94 percent in February 2016, from 9,55 percent in January 2016.
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