Consumer inflation in Zimbabwe slowed to a 12-month rate of 4.1 percent in July from 5.3 percent in June, the government agency responsible for tracking economic data said Monday.
The Zimbabwe National Statistics Agency said easing food prices helped reduce annual inflation, though the monthly change in July was the same as in June – minus 0.1 percent.
So the substantial decline on an annual basis was mainly the result of a 1 percent monthly surge in July 2009 falling out of the 12-month series used to calculate the annual rate.
Since its inception in February 2009, the inclusive government has managed to stabilize the economy to some extent. It has projected that consumer inflation will end the year at 4.5 percent.
Economist Nhlanhla Nyathi told VOA reporter Ntungamili Nkomo that the drop in year-on-year inflation is good news for the economy, but cautions much more reform and restructuring is needed.
"I wouldn't say we are out of the woods yet, but I would say the economy is definitely on its way in terms of recovery," Nyathi said.