By February, year on year inflation will be negative,” he said. - TopicsExpress

By February, year on year inflation will be negative,” he said. “It might remain so until May or June.Mverecha said it was “very difficult” for a country to come out of deflation, pointing to Japan which has over the past decade struggled to get to the inflation level. He said deflation has serious negative impact across the economy. “Deflation always impacts severely on the poor.” Major impacts will be on prices and stability of the financial sector, he added. Zimbabwe successfully dealt with hyper-inflation which had ravaged the economy in the past 10 years by abandoning its local currency and adopting a basket of multi-currencies anchored by the United States dollar. At the last official count which was its peak, inflation topped 231 million percent in June 2008 and six years down the line, the economy is on the verge of deflation.

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