ZIMBABWE’S Producer Price Index for June 2021 was a slight 0,15 percent higher at 4 617.21 from 4 610.45 recorded in May this year, Zimbabwe National Statistic Agency (Zimstat) has revealed.
On the other hand, the year-on-year Producer Price Index (PPI) rate surged by 73.50 percent in June 2021 compared to the same period in 2020.
The producer price index differs from the consumer price index (CPI) in that, it measures final demand prices that producers get for their goods while the CPI tracks what consumers pay at the till.
Data unveiled by Zimstat show producer prices are slowing down in another sign that inflation is moving at a slower pace than in prior months.
The latest PPI of 73,50 percent is a significant drop from the annual PPI of 118,54 percent in May 2021 and 177,24 percent in April 2021. In June 2020 the PPI was at a 779,61 high percent.
The producer price for food products came off with an annual PPI of minus 13,20 percent.
The PPI for dairy products was a negative 78,93 percent.
According to Zimstat the main drivers of the PPI were predominantly triggered by procurement of material linked to the production of food, clothing apparel, mining and some other agriculture-related goods.
“The group of products that have contributed most to the rise in the index in June 2021 were manufacture of other food products, manufacture of wearing apparel, mining and quarrying, quarrying of stones, sand and clay and manufacture of vegetables and animal oils and fats,” indicated Zimstats.
The rest of other groups of products did not contribute to the increase or decrease of the index.
Earlier this year manufacturers argued that businesses have been responding to the general adjustments in various rates and fees across the economy and the absorption of these costs have been passed on to the consumer.
Meanwhile, Zimbabwe’s annual rate of inflation plunged to 56,37 percent for July 2021 from 106,64 percent in June, statistics from Zimstat show.
The year on year inflation rate fell double-digit level in July, the first time it has done so in approximately two years.
On a month-on-month basis, inflation was at 2,56 percent from June’s rate of 3,88 percent.
The Reserve Bank of Zimbabwe has forecasted this year’s inflation to close at approximately 25 percent due to stable exchange rate and on ongoing efforts to control money supply growth.