Inflation rate slows down

By Stanley James

Economists are looking to the future with hope following a slowdown in the rate at which prices are increasing as reflected by a drop in annualised inflation during the last quarter of the year.

Latest data from the Zimbabwe National Statistics Agency indicates year on year inflation has eased to 401 per cent in October from 471 per cent in September.

University of Zimbabwe lecturer in Monetary Economics, Mr Munyaradzi Mavesere said the trend indicates a slowdown in the rate at which prices are increasing compared to the first quarter where price increases were at high levels.

“It does not necessarily mean that prices are falling but it serves as an indicator that the rate at which prices are increasing is slowing down.”

Zimbabwe Farmers Union chief economist, Dr Prince Kuipa weighed in saying the slowdown in price increases will help effective planning by industry and commerce.

Treasury has revealed that year on year inflation is likely to continue on a downward trend next year.

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