Zimbabwe monthly inflation dips to 0.3 percent as annual rate hits 95 percent

Zimbabwe saw prices rise more slowly during June as government officials worked to control costs across the country. The Zimbabwe Gold currency showed monthly price increases of just 0.3 percent compared with 0.9 percent during May. Officials from Zimbabwe National Statistics Agency released these numbers as part of their regular economic reports. Housing costs and transportation expenses pushed most of the price changes during the month. Government leaders have used strict spending rules and tight money policies to slow price growth.

Annual price increases reached 95 percent compared with 85.7 percent when officials first measured the new currency last year. Economists expect these yearly numbers to fall as monthly rates stay low over time. The Reserve Bank of Zimbabwe had changed currency values last October to fix problems with exchange rates. This currency change caused prices to jump higher during recent months.

American dollar prices stayed mostly flat with tiny increases of 0.2 percent during June. Food and drink costs actually fell when measured against dollars. Combined price measures for both currencies showed small decreases of 0.1 percent for the month.

Economists believe Zimbabwe moves toward better price stability but warn leaders must continue careful policies. Dr Prosper Chitambara said the country needs to keep using conservative spending approaches. The central bank expects annual price growth to drop around 20 percent before the year ends.