ZIMBABWE'S annual rate of inflation shed 0,39 percentage points on the October figure to 2,99 percent in November as the country's major trade currency lost ground, the Zimbabwe National Statistics Agency

said yesterday.

This means prices, as measured by the all items consumer price index, increased by an average of 2,99 percentage points between November 2011 and November 2012.

However, the fall in the rate of inflation does not imply a fall in the price of goods and services, but the decrease in the rate or magnitude by which prices increased over 12 months.

The annual rate of inflation is given by percentage change in the index of the relevant month of the current year compared with the index of the same month the prior year.

"The year on year food and non-alcoholic beverage inflation prone to transitory shocks stood at 3.85 percent while non food inflation stood at 2,61 percent," said ZimStat.

The month on month rate of inflation decreased by 0.13 percentage points on the October 2012 rate of 0,26 percent.

Monthly food and beverages rate of inflation lost 0,28 percent in November to 0,18 percent while non-food and month on month inflation shed 0,06 percent to 0,11 percent.

The South African rand, Zimbabwe's major trading currency, traded at US$1 to R8, 07 on November 1 2011, but is currently trading at US$1 to R8, 08 making it relatively cheaper for local companies to buy from South Africa.