The inflation rate for January 2015 on year-on-year basis as calculated based on the all items, Consumer Price Index was placed at -1.28%, with a decline of 0.48% points on the December 2014 rate of 0.80%.
The Zimbabwe Statistical Agency told in a statement that this sums up to costs as measured by all-items CPI declined by an average of 1.28% points from January 2014 to January 2015.
An official stated that the prices have been mainly declining owing to the fact that most products were being bought from South Africa, where they apply the rand. This means that traders have been making a profit when they swap the US dollar to the rand that has lost some of its value.
He added that most prices are declining, for example, a 2-litre Fanta bottle is now priced in between US$2 and US$2.20 depending on the store. The US dollar is garnering value when compared to the rand.
The non-alcoholic beverages and food inflation on year-on-year basis was prone to momentary shocks that were placed at -2.74% whereas the inflation rate for non-food products was at -0.57 %. The inflation rate on month-on-month basis in January 2015 was -0.34%, with a decline of 0.25% points on the December 2014 rate that was -0.09%.
It means that the prices, as measured by the all items CPI, declined at 0.34% average rate between December 2014 and January 2015. Annual inflation decreased in 2014 from 1.6% to 0.2% in 2013 owing to inflationary pressures.