Zimbabwe's inflation shoots up, again

Zimbabwe's inflation shoots up, again

• Murerwa wants end to price controls

• Zim inflation surges by 90 percent

• Murerwa slashes ministerial budgets

• Top businessman Naran dies

• SA approves US$1bn credit line for Zim

• RBZ devalues Zim dollar by 40 percent

• Zimbabwe faces economic meltdown

• Gono's economic plan crumbles as inflation shoots up

• Patrick Mlambo: A 100 reasons why Gono should resign

• Gono wants white farmers back

• Central back chief admits failure

• Gono revises inflation target 100 percent upwards

• Gono's 'sleepless nights' over inflation

• Gono fighting a losing battle

• Gono, the Zimbabwean Napoleon

• Patrick Mlambo: The small minds in charge of our economy

• Chido Makunike: Overcoming the 'Messiah Complex'

• Zimbabwe dollar depreciates by 4 percent

• Inflation accelerates once again

• Gono predicts inflation to fall to 20%

• Zim fools no-one with 9% unemployment claim

• Zim claims on lowered inflation unconvincing

• House prices bite Zimbabwe's poor

• Reserve Bannk cautions against paying ex-political prisoners

• $200bln windfall for ex-political prisoners

• Zimbabwe's inflation seen dipping to 160%

By Staff Reporter

ZIMBABWE'S inflation rate accelerated in the year to August, a move that compounds the hardship of a population grappling with high unemployment and shortages of essential goods.

President Robert Mugabe's government has singled out inflation as the biggest scourge to the economy and analysts doubt it will subside to 80% by the end of the year as forecast by the central bank.

Inflation accelerated to 265,1% in the year to August from 254,8% in July, the Central Statistical Office said on Monday. But month-on-month inflation slowed to 8,3% in August compared with 47% in July.

"At this rate I don't think the central bank's year-end target is achievable," said Nyasha Chasakara, an analyst with a local finance house.

"...with fuel prices doubling and electricity costs also having doubled, even some guys' (private economists) predictions of about 250% by year end are looking too low," said Chasakara.

Annual inflation has retreated from a record of 623% in January 2004, but remains among the highest in the world as Zimbabweans struggle with a collapsing local currency.

Fuel prices went up by at least 120% last week, pushing transport costs higher for urban commuters whose salaries have failed to keep up with surging prices.

Zimbabwe's economic woes have been worsened by the withdrawal of international donor aid over policy differences with Mugabe's government, especially its controversial seizure of white-owned commercial farms for landless blacks.

Last Friday the executive board of the International Monetary Fund postponed a decision on whether to expel Zimbabwe as a member over the African country's debt payment arrears.

The fund has twice postponed recommending that Zimbabwe be stripped of its fund membership, a move that would further isolate a country saddled with unemployment of more than 70% and acute food and fuel shortages.

State media quoted Zimbabwe's central bank governor Gideon Gono as saying at the weekend that the country needed radical economic reforms to solve a crisis many critics blame on government mismanagement.

The economy has contracted by more than 30% in the last six years and last month Finance Minister Herbert Murerwa lowered growth forecasts for 2005 further to below 2% from earlier estimates of 3,5%.

Mugabe's government denies charges of mismanagement and says the economy is being sabatoged by foreign and domestic opponents of its land reform policies - Reuters
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