By Stanley James
A slowdown in price increases as reflected by a drop in month on month inflation has ignited hopes of improved purchasing power for consumers.
The Year to Year inflation rate for March as measured by the all items consumer price index was at 240,55 percent down from the February rate of 322 percent.
On the other hand, month on month inflation for March stands at 2, 26 percent from 3,45 percent in February, raising optimism of improved buying power for consumers.
The latest data from the Zimbabwe National Statistics Agency (ZIMSTAT) therefore means that although there are some upward movements in the prices of commodities, it is the pace at which they are increasing that has slowed down.
University of Zimbabwe Business School Director Dr. Nyasha Kaseke revealed that the downward inflation trend is in line with the central bank’s efforts to maintain a tight money supply growth.
“Going forward we want to see sustained growth of the money supply so that this can have a positive impact in sustaining the current gains from the inflation levels.”
The central bank is predicting blended monthly inflation to remain subdued for the greater part of this year.