The southern African country had grappled with hyperinflation, prompting a unity government formed in February by President Robert Mugabe and his rival Prime Minister Morgan Tsvangirai to adopt the use of multiple currencies, replacing the worthless local unit.

The CSO attributed the slowdown in August inflation to the lower cost of food and non-alcoholic beverages.

The agency, which temporarily halted the release of official data when inflation reached 231 million percent in July 2008, currently does not give year-on-year inflation statistics.

In July Finance Minister Tendai Biti said the country was still experiencing inflationary pressures from public utility and municipal tariffs, as well as low production levels, which averaged 30 percent of total capacity. – Reuters