/ 1 January 2002

Inflation reaches 123,5% in Zimbabwe

While queues lengthened for maize meal, sugar, cooking oil and other staples, Zimbabwe’s Central Statistic Office on Wednesday reported inflation had reached at all time high of 123,5%.

Increases in the prices of food and clothing were the main contributors to the latest surge, said a bulletin released by the office, covering the period to the end of July.

Inflation fell back temporarily from 120 to 114% in June. Independent economists fear inflation could exceed 200% by year-end as the nation is hit by the combined effects of drought and political turmoil.

In addition to scarcities of basic food items, there has been a return to sporadic shortages of petrol and diesel over the past week, allegedly due to troubles with Libyan suppliers.

Police reported on Wednesday that a man was beaten to death in Harare’s Old Mbare market in a dispute over a bag of maize. The country needs to import 1,5 tons to avert famine, but has so far managed to bring in only a fraction due to logistical problems.

Industrialist Jonee Blanchfield said runaway inflation caused particularly severe hardship to those on small fixed incomes.

?Most pensioners are now suffering because of the inflation scourge,” she said. – Sapa-DPA