Zimbabwe’s annual inflation rate leapt to a new record 7 634,8% in July, the first official price data to be published for three months showed on Wednesday.
The country is in its eighth year of recession marked by chronic shortages of fuel and foreign currency, unemployment of more than 80% and the world’s highest inflation rate.
The Central Statistical Office (CSO), which had not published price data since the April figures, said that inflation was 7 251,1% and 4 530% in June and May respectively.
Month-on-month inflation for July was 31,6%, down 54,6 percentage points on the June figure, the data showed, with food and non-alcoholic beverages continuing to drive inflation higher.
President Robert Mugabe’s government forced businesses to freeze price in late June to help stem inflation, but the move exacerbated shortages, leaving shop shelves empty. It eased some restrictions on Wednesday.
Shops and businesses that were ordered to slash their prices two months ago will now be able to increase their charges for commodities such as sugar, cooking oil, chicken and soap as well as phone bills by up to 20%, the Herald reported. Agriculture retailers will also be able to hike their charge to farmers for maize seed and insecticide.
Obert Mpofu, the country’s Industry Minister, acknowledged the need to increase the availability of goods, saying ”more concerted efforts should … be put on improving the supply of basic commodities to the market”.
”Stakeholders are, therefore, urged to have a common sense of purpose, direction and focus for the benefit of all Zimbabweans,” he told the Herald.
Mugabe, in power since independence from Britain in 1980, has accused some businesses of raising prices without justification as part of what he calls a Western plot to oust him. — Reuters, AFP