Zim inflation increases again
2005-05-14 12:12
Special Report
Zimbabwean prime minister Morgan Tsvangirai says there has been progress in talks between the country's two political parties.
Zimbabwean President Robert Mugabe says he doesn't expect the US sanctions on his country to be lifted soon.
Harare - A government official announced a "marginal" increase in inflation in April from 123.7 to 129.1% on Saturday, as economists and consumer groups questioned the basis for the calculation.
Central Statistical Office acting director Moffat Ngoni told state radio there had been increases in prices of food items such as vegetables, milk, meat, cooking oil and beverages but blamed most of the rise on "parallel market" illegal dealing in foreign exchange and imported commodities such as gasoline.
There were continuing lines of up to 4km at the few filling stations with stocks. Gasoline, 3 600 Zimbabwe dollars a litre before the latest crisis, is now selling on the parallel or black market at nearly three times that price.
Reserve Bank governor Gideon Gono claims the country is achieving an "economic turnaround" with inflation falling from a record 622% early last year, but the Consumer Council of Zimbabwe says prices have doubled since the March parliamentary elections.
Economists accuse the government statisticians of ignoring the necessity for black market purchase of a wide range of basics, unobtainable at the official prices.
Police spokesperson Paul Nyathi told the state-owned Herald in an article published on Saturday officers had found sugar being sold at 12 500 Zimbabwe dollars ($2) a kilogram instead of the control price of 5 500 Zimbabwe dollars (89c), and maize meal priced at 4 000 Zimbabwe dollars (65c) instead of 1 262 Zimbabwe dollars (20c). The dealer was fined and the goods confiscated.
Gono was scheduled to make a major financial policy announcement next Thursday, said a Reserve Bank spokesperson.
Zimbabwe's economy has been crippled by a combination of mismanagement and controversial land reform programmes which have devastated the agricultural production base.
- AP