Zimbabwe annual inflation slows to 3.9 percent

Annual inflation in Zimbabwe held steady at 3.94 percent in July, off slightly from the June figure of 3.97 percent, due to easing food costs, the national statistics agency said Wednesday.

Zimbabwe's economy has stabilised over the last three years after a decade-long downturn which saw runaway hyperinflation reaching an official peak of 231 million percent before the government stopped counting.

The monthly inflation rate for July stood at 0.23 percent, against 0.20 percent in June, the Zimbabwe Statistics Agency said.

A power-sharing government formed in February 2009 between long-time political rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai dumped the worthless local dollar in favour of the US dollar and other regional currencies.

Goods that were in short supply or unavailable returned to the shelves, but prices have continued to fluctuate according to the cost of importing.

Zimbabwe relies on imports mainly from neighbouring giant South Africa after the economic meltdown forced factories to downsize, close or relocate to neighbouring countries.

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