Zimbabwe's annual inflation rate for July has dropped by 191 percentage points to 993.6 percent from the June rate of 1,184.6 percent, the Central Statistical Office (CSO) announced on Wednesday.
The month on month inflation rate for July, however, increased by 7.8 percentage points to 25.1 percent from 17.3 percent in June.
This rate for July last year hit a record high of 47 percent from 17 percent of the previous month.
CSO Acting Director Moffat Nyoni told a press conference that he attributed the marked decline in annual inflation rate to the slower increase of the monthly inflation rate this year compared with that of last year.
"The main contributory factor to the decline in year-on-year inflation in July is that the huge increase in prices on a month-on-month basis in 2005 was not repeated this year," Nyoni said.
The decline of annual inflation rate is the second lasting one after 15 months of rising.
The average prices of goods and services normally purchased by households for final use in Zimbabwe this July were about 11 times as expensive as they had been a year before.
Nyoni also attributed the decline in yearly inflation rate to the huge decline in non-food inflation rate which decelerated by 250.3 percentage points from the June rate, in a sharp contrast to the inflation rate of food and non-alcoholic beverages which fell by 83.3 percentage points.
On a year-on-year basis, the prices of paramedical services, electricity, gas and other fuels recorded the highest increases.
On a month on month basis, the items with the highest increases in prices were insurance (vehicle and health), fuels, lubricants and hospital services, while that recording the lowest increase was postal services, Nyoni said.
Despite the decline, Zimbabwe's inflation rate is still the highest in the world expect those in war zones, and the authorities have declared it as the country's No. 1 enemy.