Harare | Tuesday
INFLATION in Zimbabwe hit a new high of 116,7% in January, the government’s Central Statistical Office (CSO) said on Monday.
The figure was 4,6% points higher than the December rate of 112,1%, CSO said.
The latest increase was caused mainly by rising prices of beverages, household operations, fruits and vegetables, rent and property taxes, and vehicle running costs, the report said.
The government has struggled to rein in the rising prices of basic foods by imposing price controls in November on items such as bread, sugar, meat, cooking oil and the staple grain maize meal.
The result has been shortages of most of those commodities, with maize meal supplies acutely low as the nation’s grain stores have dwindled.
The CSO report on Monday was the latest sign of how far Zimbabwe’s once vibrant economy has declined.
Mired in depression for more than two years, the economy shows no signs of recovering as the nation’s political situation worsens ahead of a crucial presidential election set for March 9-10.
The UN World Food Program has launched a $60-million appeal for food relief to Zimbabwe, which normally exports to the region.
Few Zimbabweans receive raises in their salaries to match the soaring cost of living. A majority of the work force does not even have a job, as the unemployment rate has hovered above 60% for more than a year.
As a result of the economic crisis, three-fourths of Zimbabweans now live in poverty.
The economic crisis will figure as a major issue in the presidential elections, when incumbent Robert Mugabe faces a serious challenge from opposition leader Morgan Tsvangirai. – AFP
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