ate slowed to 6 592,8% year-on-year in August from a record 7 634,8% in July, the government’s Central Statistical Office (CSO) said on Tuesday.
19.9.2007
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Inflation slows (19-09-07)
H ARARE:
ZIMBABWE'S inflation r
The CSO director Moffat Nyoni attributed the improvement to a sharp slowdown in prices for food and non-alcoholic beverages.
“The main contributory factor to the decline in year-on-year inflation in August was that the huge increase in prices on a month-on-month is being repeated,” Nyoni said.
Inflation opended the year at 1 593,6% before rising 1 729,9%, 2,200,2% and 3 713,9% in February, March and April. In May and June inflation rose to 4 350% and 7 251,1% respectively.
The decline of annual inflation rate is the first since July last year when inflation declined from 1 184,6% in June to 993,6%.
Despite the decline, Zimbabwe’s inflation rate is still the highest in the world. Economists believe that these price increases will this month after government started reviewing prices of some basic commodities.
The government has also recently warned of shortages of bread and flour, which may cause even more hardship.
Rampant inflation is a clear sign of a deep economic crisis, analysts said.
Critics have blamed President Robert Mugabe’s policies, particularly the seizure of white-owned farms, for damaging the once self-sufficient country – in the past described as the bread basket of Africa.
President Mugabe, meanwhile, has accused foreign governments of trying to sabotage Zimbabwe’s economy and topple him- CAJ News.
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