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Zim inflation tops 400%
10/11/2005 16:55 - (SA)
Harare - Zimbabwe's triple-digit inflation shot up to 411% in October on a year before, dealing an embarrassing blow to central bank targets to reduce it to about 300% by year-end, according to official figures released on Thursday.
This compares with South Africa's inflation rate of 4.7%.
"On average, a bundle of goods and services that cost Zim$100 000 (US$1.6) in October 2004 would, on average, cost Zim$511 000 (US$8.50) in October 2005," said the central statistical office.
The increase hit postal rates, hairdressing charges and the prices of bicycles the hardest, up by 1 965.6%, 1 750.8% and 1 838% respectively.
The country's average annual inflation has been climbing since 2000 when it stood at 55.9%, rising to 71% a year later.
It reached 133.2% in 2002 before soaring to 622% in January 2004.
Reserve bank governor Gideon Gono said last month: "The upward trend is expected to slow down during the last quarter of the year, with annual inflation expected to reach levels of 280% to 300% by December 2005 and of between 50% and 80% by December 2006."
Finance minister Herbert Murerwa admitted two months ago that targets for economic growth and inflation would be missed.
He said economic growth that had been expected to reach more than 3.5% would now be below 2% for the year in Zimbabwe.
"The annual rate of inflation, which had been targeted to further come down to under 300% by year-end, is now projected to end the year higher," said Murerwa.
Zimbabwe is in the throes of what analysts say is its worst economic crisis, characterised by triple-digit inflation and chronic shortages of basic commodities like fuel, cooking oil and sugar.
The government of President Robert Mugabe blames the crisis on targeted sanctions imposed on its rulers by European Union member countries and the United States, as well as prolonged drought.
US ambassador Christopher Dell last week angered Harare when he said the "Zimbabwe government's own gross mismanagement of the economy and its corrupt rule" were at fault.
- AFP
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