The month-on-month inflation rate in February 2023 dropped to -1.6 percent from the January 2023 rate of 0.7 percent, the Zimbabwe National Statistics Agency (ZIMSTAT) has said.
Negative inflation, or deflation, happens when prices generally fall in an economy either because the supply of goods is higher than the demand for those goods or the buying power of money becomes greater. ZIMSTAT said:
The month-on-month inflation rate in February 2023 was -1.6 percent shedding 2.3 percentage points on the January 2023 rate of 0.7 percent.
… The year-on-year inflation rate (annual percentage change) for the month of February 2023 as measured by the all items Consumer Price Index (CPI) was 92.3 percent.
ZIMSTAT used the blended rate to measure both the month-on-month inflation rate and the year-on-year inflation rate for the month of February 2023.
On Friday, the government announced that from now, inflation will be measured using a weighted average of items priced in Zimbabwean dollars and United States dollars. ZIMSTAT said:
The year-on-year inflation rate is computed in accordance with SI 27 of 2023. The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the current year compared with the index of the same month in the previous year.
According to Statutory Instrument 27 of 2023, “… ‘rate of inflation’ means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.”
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