Gono monetary policy review to tackle price hikes

Gono monetary policy review to tackle price hikes

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By Lebo Nkatazo

THE governor of Zimbabwe's central bank embarks on mission impossible this week as he attempts to persuade a restive population that an economic turn-around is still achievable after the latest round of price increases.

The latest increases over the weekend saw the price of bread and transport going up by more than 50 percent. Beer prices also went up.

Reserve Bank Governor Gideon Gono, seen by his supporters as some kind of messiah with answers to the country's economic woes, presents another monetary policy review next Monday.

His policy statement will be preceded by a mid-term fiscal policy announcement by Finance Minister Herbert Murerwa on Thursday this week.

Gono has been basking in borrowed glory following a slight decline in Zimbabwe's record inflation in June -- annual inflation slid by 8,9 percent points to 1 184,6 while the month on month figure fell by 10 percent to 17,3 percent.

Gono's monetary policy reviews often result in wild predictions about the prospects of economic recovery.

His critics say while he has got the economics right, he doesn't have the political support to create the necessary environment for growth.

A loaf of bread went up Saturday from between $130 000 and $140 000 to $210 000 and $230 000.

A single trip from Glen Norah or Mufakose into Harare’s Central Business District was increased from $100 000 to $150 000 Sunday. From Chitungwiza to Harare it now costs $200 000 up from $150 000.

Even the retail price or bottle store price of beer went up last week rising from $150 000 per pint to $220 000.

Fuel prices rose recently settled on $500 000 per liter from $200 000 in May.
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