/ 17 May 2004

Zimbabwe inflation drops by 78%

Zimbabwe’s inflation rate fell by 78,7% in April to 505%, an official newspaper reported on Monday, as the country presses on with efforts to bring inflation down to less than 200% by the end of the year.

The Herald attributed the drop from the previous month’s figure of 583,7% to the launch of a new monetary policy in December 2003.

In launching the tighter policy, Central Bank Governor Gideon Gono said he was confident that inflation would be brought down to less than 200% by December 2004.

Inflation has created extreme hardships for ordinary Zimbabweans, who have seen wages eroded and prices in shops going up on a regular basis.

Foreign currency shortages and a flourishing black market for hard cash are blamed for fuelling inflation.

Foreign currency auctions introduced by the central bank last year have resulted in $333,5-million flowing into the official market in the first three months of this year, compared with $302-million for the whole of last year, according to the bank. — Sapa-AFP