Zimbabwe's inflation down to 252 percent

Zimbabwe's inflation down to 252 percent

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By Agencies

ZIMBABWE'S annual inflation rate fell to 252% last month, marking a steady decline since February this year, according to figures issued on Saturday.

The government Central Statistical Office said year-on-year inflation dropped 62% from August. Between August and September, prices increased by six percent.

The cost-of-living index hit a record 623% in January this year, but has since fallen 371%.

Economists say the fall is due to a clampdown by the central bank on reckless and corrupt management in the financial sector, but is also a function comparison of prices this year with the runaway surge in the cost of living last year.

The latest annual inflation figure takes the government within reach of its target of 200% by the end of the year.

The International Monetary Fund has repeatedly warned in commentaries this year that President Robert Mugabe's government is running highly inflationary policies that will cause the rate to soar again soon.

The Zimbabwe economy has plunged over 30%t over the last four years and is expected to fall by another five percent this year following Mugabe's lawless seizures of white-owned commercial farms and a campaign of ruthless repression against his opponents.

Agriculture, the mainstay of the economy, has collapsed and foreign investment has dried up. Famine is expected for a third successive year.

In its latest report in August, the IMF expressed grave concern over deteriorating social indicators that in the past were among the best in Africa. - dpa
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