Zimbabwe’s annual inflation leapt to a new record 1 593,6% in January, showing no respite in a crisis marked by chronic shortages of foreign exchange, food and fuel and unemployment of more than 80%.
Inflation, which the government has dubbed its number one enemy, is the highest in the world.
Critics blame President Robert Mugabe’s politically driven policies, including the seizure of land from white commercial farmers to resettle landless black people. The veteran leader says Zimbabwe is being sabotaged by his opponents.
The Central Statistical Office (CSO) said January inflation quickened from 1 281,1% in December, while on a monthly basis prices jumped 45,4%, compared with 36,3% in December.
”It is the non-food items that pulled the inflation rate upwards. The top three items that contributed most to year-on-year inflation were electricity, gas and other fuels,” Moffet Nyoni, acting CSO director, told reporters.
The government has forecast inflation will ease to between 350% and 400% by the end of the year but analysts differ, saying the government does not have policies or proposed reforms to slow rampant price increases.
Political tensions are rising as urban workers bear the brunt of the economic crisis that has hit the cost of consumer goods, rentals, public transport fares and medical fees.
Doctors and nurses have been on strike since last month to protest worsening conditions, paralysing state hospitals and have now been joined by some teachers and university lecturers.
The top union representing government employees said on the weekend that it was demanding a review of salaries of all civil servants, and said if the demand was not met the ”agitated” workers would consider protests.
The Zimbabwe dollar is officially pegged at 250 to the United States greenback but fetches up to 5 000 on a thriving black market.
Mugabe denies charges he has run down the economy and instead says Western countries have sabotaged the economy to punish his government for the land seizures. — Reuters