Prices of some commodities in the major cities in Zimbabwe have begun taking a downward trend as others are stabilizing. Economists said on Sunday that this indicates that inflation will start going down in the next few months.

Mealie-meal, the main staple food for most of the Zimbabweans, has recorded the biggest price reduction with the 10 kilogram packet of the roller meal brand, which was being sold for an average of 400,000 Zimbabwe dollars at the beginning of the year, now being sold for between 180,000 and 200,000 Zimbabwe dollars in retail outlets in Harare, the country's capital city.

At Gumba's Supermarket in the city, the 10 kilogram roller meal brands were being sold for 190,000 Zimbabwe dollars. (One U.S. dollar equals about 101,000 Zimbabwe dollars.)

The reduction in mealie-meal prices has been attributed to increased maize deliveries to the GRain Marketing Board following a good summer cropping season, which saw farmers recording bumper harvests.

Some imported cooking oil brands are costing an average of 600, 000 Zimbabwe dollars per two-liter bottle while local manufactured brands are costing over 1 million Zimbabwe dollars. This might force local producers to reduce their prices to remain competitive, the economists said.

Fuel is another commodity has seen a steady decline in prices as petroleum products have flooded the market following the deregulation of the oil industry.

From a peak of 250,000 Zimbabwe dollars per liter of diesel and petrol early in the year, one can now buy the same quantity for as low as 175,000 Zimbabwe dollars.

Vegetable prices are also tumbling as the market is now well supplied with fresh produce.

But at the same time prices of some beverages such as beer and soft drinks went up last week. Prices of other goods and services are still going up.

Economic commentator David Govere said people should not expect inflation to go down immediately, because there are still distortions in coal and power supplies.

Zimbabwe's annual rate of inflation for the month of April has reached an all time high of 1042.9 percent, gaining 129.3 percentage points on the March figure of 913.6 percent, according to the Central Statistical Office.

Analysts had long predicted that the figure for April would pass the 1,000 percent mark and continue to rise until the end of the second quarter. The increase meant that prices of goods and services had increased 11 times from last April.

"Inflation might begin to see a downward trend from the end of August this year because of the anticipated reduction of food imports following a good agricultural season," Govere said.

Claude Maredza, the chief executive of the Small Enterprises Development Corporation, said the inflation issue could be addressed if measures prescribed under the National Economic Development Priority Program, which has been launched by the government.

Maredza, also an economist, said the country should focus on generating more foreign currency through new initiatives such as adding value to products and boosting tourism.

Source: Xinhua