/ 9 August 2006

Zimbabwe’s annual inflation experiences a dip

Zimbabwe’s annual inflation rate has declined to 993,6% in July from 1 184,6%, the country’s Central Statistical Office (CSO) said on Wednesday.

“The year-on-year rate of inflation in July 2006 was 993,6%, shedding 191 percentage points on the June rate of 1 184,6%,” acting CSO director Moffat Nyoni told a news conference.

“This means that on average goods and services normally purchased by households for final use in Zimbabwe were about 11 times as expensive in July 2006 as they had been 12 months before.

“A bundle of goods and services that cost Z$100 000 in July 2005 would on average cost [about] Z$1,1-million in July 2006,” he added.

The annual inflation rate in Zimbabwe has been on a rollercoaster ride since December 2004 when it shot up to 622,8%. It sunk to a comparative low of 123,7% in March 2005 before rising again to a peak in May 2006 of 1 193%.

Even though inflation has been on the decline since June, life remains tough for millions in Zimbabwe who barely able to make ends meet.

In July, the cost of living for a family of six shot up to Z$75,4-million ($300) up from Z$61-million, according to the local Consumer Council of Zimbabwe watchdog. — AFP