inflation3.jpgZimbabwe’s year on year inflation rate has declined to 2,7% from 3,0% in February this year as government forges ahead with policies to maintain macro- economic stability.

According to official data released  by the Zimbabwe National Statistics Agency (ZIMSTAT), the drop in inflation means that prices as measured by the Consumer Price Index (CPI) increased by an average of 2,7 percentage points between March 2010 and March this year.

The agency revealed that month on month inflation rate in March this year was 0,8%, gaining 0,3 percentage points on the February rate of 0,5%.

The drop in the rate of inflation, which is however coming on the back of inflationary pressures due to marginal increase in the prices for some basic commodities and utility charges, has been described by an economist, Mr Christopher Mugaga as an indication that the economy is on track to recovery.

“Basically, we are on the right track and we hope this will be good for the nation,” Mr Mugaga said.

Inflation, which is used as a benchmark in assessing macro-economic stability, is being projected by the government to end the year on a positive rate of at least 5% but economists warn that failure by the business community to exercise restraint on price increase and avoiding profiteering and speculative behaviour can lead to current gains on inflation being reversed.