The July 2009 Consumer Price Index has now been released and it shows that inflation increased by one percent in that month. In June, you might recall

The July 2009 Consumer Price Index has now been released and it shows that inflation increased by one percent in that month. In June, you might recall, the increase was a little more than half of one percent, so it would appear that the downward drift in prices that was evident in the first five months of the year has bottomed out. However, retailing has remained very competitive and the buying power of the population has shown little sign of improving, so we might see some prices falling again in the coming months.

I have attached the table showing the basic categories and it will be seen that food prices are said to have increased slightly this time, the averages having fallen in June. I queried this claim with the Central Statistical Office as my own calculations suggested that food prices had in fact increased in June. I was told by the statisticians that many of the shops in their survey list did not have a full complement of the items in the food table, so they left the items off their tables and did the calculations on the rest, adjusting the weights for the absent items. As my calculations did not allow for these changes, my result was different from theirs.
I have not put the latest sets of figures to the test this time!

Kindest regards,
John has now been released and it shows that inflation increased by one percent in that month. In June, you might recall, the increase was a little more than half of one percent, so it would appear that the downward drift in prices that was evident in the first five months of the year has bottomed out. However, retailing has remained very competitive and the buying power of the population has shown little sign of improving, so we might see some prices falling again in the coming months.

I have attached the table showing the basic categories and it will be seen that food prices are said to have increased slightly this time, the averages having fallen in June. I queried this claim with the Central Statistical Office as my own calculations suggested that food prices had in fact increased in June. I was told by the statisticians that many of the shops in their survey list did not have a full complement of the items in the food table, so they left the items off their tables and did the calculations on the rest, adjusting the weights for the absent items. As my calculations did not allow for these changes, my result was different from theirs.
I have not put the latest sets of figures to the test this time!
Uncertainties surrounding business conditions and the claimed progress said to have been achieved by the Government of National Unity in preparing the ground for an economic recovery seem to me to still be discouraging potential investors as well as the countries that are keen to help Zimbabwe.
The budgeting challenges that lie ahead of all businesses seem likely to impose a very slow recovery rate for effective demand unless a big influx of liquidity is made possible, but I have to say that I do not see that happening before our politicians have woken up to the need for major policy changes.

Kindest regards,
John Robertson