The Zimbabwe state airline doubled its fares on Monday and the cost of a new passport went up thirty fold.
Spiralling prices also saw restaurant and bar prices double over the weekend, and prices were sometimes raised during a meal.
Waitresses in a sports club advised patrons to place their orders before a price hike came into force an hour later and some restaurants began accepting American currency as chronic shortages of local cash worsened.
A new spate of price increases in the crumbling economy dealt a further blow to official efforts to combat black-market dealing in money and goods and left Zimbabweans facing the reality of living in a United States ”dollarised” world as their own currency slumped in value.
In a statement to travel agents, Air Zimbabwe said on Monday a round trip to London doubled to Z$804-million, about US$400 at the dominant black-market exchange rate or a massive US$27 000 at the obsolete official exchange rate of 30 000 to 1.
The central bank has not officially devalued the local currency but has said imported luxuries for the upcoming Christmas period can be sold at an exchange rate equivalent to 850 000 to 1, less than half the black-market rate.
That pricing would be monitored by government price-control inspectors, making imports available only at a loss to businesses already battling to stay viable.
Notices in the Harare passport office on Monday showed a range of higher costs from immediate effect in local currency for passports and other documents.
A regular passport went up thirty fold and passports were also being issued in a ”fast-track” service over several days for US$220 in American bills.
Official inflation in October was given at nearly 8 000%, by far the highest in the world. Independent finance houses estimate real inflation stands closer to 40 000% and the International Monetary Fund has forecast it reaching 100 000% by the end of the year.
After an absence of five months, cigarettes have reappeared in stores after the price doubled to about 50 US cents a pack, still among the cheapest tobacco products in the world at the black-market exchange rate, but the most expensive at $40 a pack at the government’s official exchange rate.
A senior teacher earns about the equivalent of $10 a month at the unofficial exchange rate.
Until disruptions to the agriculture-based economy began with the often violent seizures of thousands of white-owned commercial farms in 2000, Zimbabwe was the world’s second largest tobacco exporter after Brazil.
With price increases on Monday, local beer was catching up with international prices of up to $3 a bottle.
According to additional independent estimates, inflation last month exceeded 70 000% for upper-income Zimbabweans who travel, use cellphones and email and buy scarce gasoline, car spares, computer accessories and luxuries such as liquor and restaurant meals. — Sapa-AP