Zim consumer prices drop for 3rd month running

2014-05-16 11:44


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Special Report

Zim will have an indigenised economy by 2018 – minister
Zim will have an indigenised economy by 2018 – minister

Zimbabwean Youth Development, Indigenisation and Economic Empowerment Minister Patrick Zhuwawo says the southern African country will have an "indigenised" economy by 2018.

Harare - Consumer prices in Zimbabwe dropped for the third month running in April, data showed Thursday, in another indication of the weakness of the southern African country's economy.

"The year-on-year inflation rate for the month of April as measured by the all items Consumer Price Index stood at -0.26%," the Zimbabwe National Statistical Agency said.

That was the better than the 0.65 drop registered in March and 0.49% slide in prices recorded in February.

Month-on-month prices rose by 0.58%.

While dropping prices may initially be a boon for consumers, if deflation sets in and consumers expect prices to fall they may hold off purchases, causing a destructive cycle of slumping output, job losses, and further price cuts.

Analysts have said the falling prices are another sign of the poor state of the country's economy where output has slumped and consumers are hard pressed following years of upheaval.

Zimbabwe has been saddled with economic woes for over a decade following President Robert Mugabe's violence-plagued land reforms which decimated farming, the backbone of the economy.

Deflation is big switch for the country where annual inflation once hit 231 million percent, prompting the government to bin the local Zimbabwe dollar which had been rendered worthless.

The formation of a power-sharing government in 2009 by Mugabe and long-time rival Morgan Tsvangirai brought some stability in the economy, with some businesses resuming operations, but the investment climate has remained clouded by restrictions against foreign-owned companies.

The new central bank chief, John Mangudya, said earlier this month that the past three years had been tough, with the economy now weaker and the financial system depressed.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
Read more on:    zimbabwe  |  southern africa


24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts

Relationships and significant connections may play an important role in your day today. Let the warmth of the Leo moon inspire you...read more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.