September inflation rose to 0,78 percent following prices increases as foreign currency shortages continued to affect the retail sector but the full effect of the recent wave of price increases will only be felt in the October figures where it is expected to close above 1 percent. According to the Zimbabwe National Statistics Agency (Zimstat), the Consumer Price Survey is done for a period of five working days normally around the 15th of every month and therefore in September 2017, the survey was carried out from September 13 to 19 2017 for a period of five working days.
“It is important to note that the September survey was carried out before the period of price increases and these price increases will be reflected in the October 2017 survey and released in the October 2017 CPI figures on November 15, 2017.”
The wave of price increases occurred around the September 23 weekend, well after the survey had been carried out. The year-on-year inflation rate for the month of September 2017 as measured by the all items Consumer Price Index (CPI) stood at 0,78 percent, gaining 0,64 percentage points on the August 2017 rate of 0,14 percent on account of price increases in products such as rice, breakfast cereals, macaroni and noodles. Price increases were observed in cooking oil in all the country’s 10 provinces. Increases in beef prices were also observed in Harare, Bulawayo, Mashonaland West, Matabeleland North and Matabeleland South provinces. Increases in tobacco prices were observed in Mashonaland East, Matabeleland South and Midlands provinces.
“This means that prices as measured by the all items Consumer Price Index increased by an average of 0,78 percentage points between September 2016 and September 2017,” Zimstat said.
The year-on-year Food and Non-Alcoholic beverages inflation prone to transitory shocks stood at 2,49 percent in September while the Non-food inflation rate was -0,01 percent. A total of 3 932 outlets and 495 products are covered monthly to compute the CPI figures. Zimstat said the month-on-month inflation rate in September 2017 was 0,38 percent, gaining 0,51 percentage points on the August 2017 rate of minus 0,13 percent.
“This means that prices as measured by the all items CPI increased at an average rate of 0,38 percent from August 2017 to September 2017,” Zimstat said in its report.
The monthly food and non alcoholic beverages inflation rate stood at 0,66 percent in September, gaining 1,13 percentage points on the August rate of minus 0,47 percent.
Article Source: The Herald