Zim inflation falls

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by Own Correspondent

HARARE - Zimbabwe's monthly inflation rate for November has declined to -0.1 percent as result of reduced food prices in the country, the government's Central Statistical Office (CSO) said on Friday.

"The month-on-month inflation rate in November 2009 was -0.1 percent shedding 0.9 percentage points on the October rate of 0.8 percent," said the CSO.

"This means that the prices as measured by the all items Consumer Price Index decreased by an average of -0.1 percent from October 2009 to November 2009."

According to the CSO, The month-on-month food and alcoholic beverages inflation stood at 0.12 percent in November, shedding 0.19 percentage points on the October rate of 0.31 percent.

During the period under review, month-on-month non-food inflation stood at -0.15 percent shedding 1.18 percentage points on the October rate of 1.03 percent.

Since the start of the year, Zimbabwe's economy is now showing signs recovery after years of decline characterised by hyperinflation, political tensions and company closures.

However, since February when President Robert Mugabe and Prime Minister Morgan Tsvangirai formed a power sharing government the economy is now showing signs of recovery.

Presenting a US$2.25 billion budget to Parliament earlier this month - the coalition government's first full budget - Finance Minister Tendai Biti said Zimbabwe's economy which was originally set to grow by 3.7 percent would grow by 4.7 percent this year with growth expected to quicken to 7 percent in 2010.

Zimbabwe no longer calculates it's inflation basing on the local currency after shelving it's use in March this year in favour of the American dollar alongside a basket of foreign currencies for all trade. - ZimOnline