Zimbabwe inflation dips 49 percent

Zimbabwe inflation dips 49 percent

• Zim increases poverty datum line

• Inflation dips slightly, still high

• Khumalo to invest R100m, says Gono

• Gono threatens fresh forex crackdown

• Disguised Gono meets forex dealers

• Gono dangles 'money back' offer to investors

• Murerwa unveils tax break for low paid workers

• Runaway prices bite in Zimbabwe

• Stanbic predicts economic recovery

• Standard Bank: 'Gono targets achievable'

• Zim inflation deeps below 450pc

• Zim reports 78pc drop in inflation

• IMF team on surveillance mission in Zim

• Makamba nabbed in corruption blitz

• Zimbabweans can't bury their dead

• Chiyangwa arrested

By Agencies

ZIMBABWE'S year-on-year inflation fell to 314% in August, less than half its January peak of 623%, according to official figures issued on Wednesday.

The state Central Statistical Office said August inflation fell 49% from 362% in July and marked the seventh consecutive month that the rate had fallen.

Prices between July and August rose 5%, compared with 10% the previous month, it said.

Economists said the year-on-year rate is still one of the highest in the world.

Inflation has been accelerating since 2000 when a campaign of violent repression by the regime of President Robert Mugabe triggered economic collapse.

Since then, gross domestic product has fallen 30%, winning Zimbabwe the distinction of having the world's fastest shrinking economy, while the value of the currency has plummeted to a hundredth of its previous value while unemployment soared to 80%.

The government claims that a clampdown on financial racketeering and tough new monetary policy has started an economic turnaround. It forecasts inflation will fall below 200% by the end of the year.

The IMF has said however that the principal causes of inflation, chiefly reckless state spending, arbitrary government controls and the flight of foreign investment remain unchanged, and warns that little change can be expected until issues of political governance are deal with.

On Tuesday, Mugabe announced that the government would soon seize half of the shareholdings of mining companies.

He was quoted in the state-controlled daily Herald on Wednesday as saying the government was moving to control the mining and manufacturing sectors that allegedly had been sabotaged by greedy individuals.

Agriculture, the backbone of the economy about five years ago -and after South Africa, the continents most robust and diverse economy - has collapsed since 2000 when Mugabe ordered the illegal seizure of productive white-owned farm land.

International aid agencies say the country is entering its third successive year of famine. - dpa
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