June inflation up marginally to – 1,37 percent


June inflation up marginally to – 1,37 percent

ZIMBABWE’S annual inflation for the month of June gained 0,33 percentage points to – 1,37 percent, the statistics agency reported on Friday.

Month on month the inflation rate increased 0,43 percentage points to 0,19 percent, the Zimbabwe National Statistics Agency said.

The economy has continued to be in a deflationary mode for the greater part of the first half of the year, with company returns softening on the back of lower aggregate demand.

Statistics show that inflation, as measured by the Consumer Price Index (CPI), remained in the negative territory despite relatively strengthening from -2,19  percent in January 2016 (Year on Year) to -1,7 percent (Year on Year) in May 2016.

There seems to be no respite to the ever mounting economic challenges in Zimbabwe as fiscal space remains tight, disposable incomes and capacity utilisation remain low, among other impediments.

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