Zim reports 78pc drop in inflation

Zim reports 78pc drop in inflation

GIDEON GONO

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By Agencies

ZIMBABWE'S inflation rate fell by 78.7 percent in April to 505 percent, an official newspaper reported Monday, as the country pressed on with efforts to bring inflation down to under 200 percent by the end of the year.

The Herald attributed the drop from the previous month's figure of 583.7 percent to the launch of a new monetary policy in December 2003.

In launching the tighter policy, Central Bank Governor Gideon Gono said he was confident that inflation would be brought down to less than 200 percent by December 2004.

Inflation has created extreme hardships for ordinary Zimbabweans, who have seen wages eroded and prices in shops going up on a regular basis.

Foreign currency shortages here, and a flourishing black market for hard cash, was blamed for fuelling inflation.

Foreign currency auctions introduced by the central bank last year have resulted in $333.5 million flowing into the official market in the first three months of this year, compared to $302 million for the whole of last year, according to the bank. - AFP
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