Zimbabwe inflation juggernaut slows but rate hits new high
Friday, 24 August 2007
HARARE, Aug 23 (AFP): Zimbabwe showed the first signs yesterday that runaway inflation was being reined in after the imposition of wideranging price cuts, despite the annual rate hitting a new high of more than 7,500 per cent.
Figures released by the central statistical office (CSI) showed that the annual rate, which was already the highest in the world, rose once again last month to 7,634.8 per cent.
"The year-on-year inflation rate for the month of July 2007, as measured by the all items consumer price index stood at 7,634.8 per cent gaining 383.7 percentage points on the June rate of 7,251.1 per cent," a CSO statement said.
"This means that prices as measured by the all items CPI increased by an average of 7,634.8 per cent between July 2006 and July 2007."
However, the CSO also said that month-on-month inflation in July was 31.6 per cent, a fall of 54.6 percentage points on the June rate of 86.2 per cent.
It was the first time since May, when the figure stood at 3,714 per cent, that the authorities have released the inflation rate and the announcement was greeted with relief by Finance Minister Samuel Mumbengegwi.
"We are obviously happy that inflation is going down," Mumbengegwi told the news agency.
"From the figures that I have seen, I am particularly happy that month on month inflation has gone down."
The announcement comes nearly two months after the government launched a controversial blitz on prices, ordering shops and businesses to effectively halve the price of basic goods.
While the price crackdown was initially welcomed as it enabled Zimbabweans to stock up on goods which had been out of their price range, it has led to widespread shortages with manufacturers unable to cover the cost of production.
The inflation announcement comes on the same day that the government authorised price rises of up to 20 per cent on basics such as cooking oil, sugar and phone bills while also making clear that it would continue to dictate the tariffs that can be charged.
Mumbengegwi said the government would intervene as much as far as it saw fit in order to bring down prices.
Figures released by the central statistical office (CSI) showed that the annual rate, which was already the highest in the world, rose once again last month to 7,634.8 per cent.
"The year-on-year inflation rate for the month of July 2007, as measured by the all items consumer price index stood at 7,634.8 per cent gaining 383.7 percentage points on the June rate of 7,251.1 per cent," a CSO statement said.
"This means that prices as measured by the all items CPI increased by an average of 7,634.8 per cent between July 2006 and July 2007."
However, the CSO also said that month-on-month inflation in July was 31.6 per cent, a fall of 54.6 percentage points on the June rate of 86.2 per cent.
It was the first time since May, when the figure stood at 3,714 per cent, that the authorities have released the inflation rate and the announcement was greeted with relief by Finance Minister Samuel Mumbengegwi.
"We are obviously happy that inflation is going down," Mumbengegwi told the news agency.
"From the figures that I have seen, I am particularly happy that month on month inflation has gone down."
The announcement comes nearly two months after the government launched a controversial blitz on prices, ordering shops and businesses to effectively halve the price of basic goods.
While the price crackdown was initially welcomed as it enabled Zimbabweans to stock up on goods which had been out of their price range, it has led to widespread shortages with manufacturers unable to cover the cost of production.
The inflation announcement comes on the same day that the government authorised price rises of up to 20 per cent on basics such as cooking oil, sugar and phone bills while also making clear that it would continue to dictate the tariffs that can be charged.
Mumbengegwi said the government would intervene as much as far as it saw fit in order to bring down prices.