10 June 2006

Zimbabwe: May Inflation Rises to 1193,5 Percent

Harare — THE annual inflation rate for May rose to 1 193,5 percent on the April rate of 1 042,9 percent, while the month on month rate gained 6,9 percentage points on the April rate of 21,1 percent to 28 percent, according to the Central Statistical Office (CSO).

CSO acting director Mr Moffat Nyoni yesterday said that the current rise means that on average goods and services normally purchased by households for final use in Zimbabwe were about 13 times as expensive in May 2006 than they has been in May 2005. "A bundle of goods and services that costs $100 000 in May 2005 would on average cost $1,9 million in May 2006," he said. On the monthly inflation figure, Mr Nyoni said that on average, a bundle of goods and services for household final consumption that cost $100 000 in April would cost $128 000, a month later in May 2006.

Year-on-year food and non-alcoholic beverages inflation stood at 1 220,5 percent to 1 187,7 percentage points from the 1 101,8 percent in April. Month-on-month food and non-alcoholic beverages stood at 19,6 percent down 8,3 percent from the April figure of 27,9 while non-food inflation was 1 180,4 percent from 1 016,1 in April. "On a year-on-year basis, the items that recorded the highest increase in prices were medical services which went up 11 029,9 percent, postal services recorded 5 180,4 percent and the hair dressing salons were 4 665,6 percent," added Mr Nyoni. On a month-on-month basis, the items that recorded the highest increase in prices were paramedical services (7 500,7 percent), medical services (1 042,7 percent) and other medical products (117,7 percent.

"The all items Consumer Price Index for May 2006 was 135 329,6 percent compared to 105 734,3 percent in April 2006 and 10 462,3 percent in May 2005," said Mr Nyoni. On a month-on-month basis the items which had the lowest increase in prices were postal service 0 percent, examination fees 0,0 percent and domestic services and household services also recorded 0,0 percent respectively.

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