Zim eyes inflation data black-out

HARARE – Zimbabwe may stop publishing inflation data for one year, an effort economists say is aimed at shielding the government from embarrassment over its failure to rein in soaring prices in the economically depressed nation.

President Robert Mugabe’s government has failed to release inflation figures for May and June – it usually does so on the 10th day each month – prompting speculation the numbers were too shocking to reveal to Zimbabweans struggling to feed themselves amid worsening food shortages and unemployment. Unofficial reports have put inflation for May at 4 500 per cent, a sharp increase from the 3 720 per cent reported by the government for April.Either figure gives Zimbabwe the world’s highest inflation rate.The Central Statistical Office (CSO) said on Friday it was working on a one-year survey that would study how events between 2001, when an economic slide escalated, and 2007 had affected inflation and whether the data was an accurate reflection of the situation in Zimbabwe.”That’s just one aspect of what we’re doing …we are also coming up with a new basket.Both are a long way off and I’m reluctant to give a time frame,” Moffat Nyoni, the acting CSO director, told Reuters.He declined to provide further details.Mugabe’s government has branded inflation its main enemy but has consistently missed targets to rein in rising prices that have pinched consumers and stoked political tensions in the former British colony in southern Africa.Officials two weeks ago ordered a rollback of all prices to June 18 levels, accusing some businesses of seeking to overthrow the government through unjustified price hikes that were designed to fuel anger among Zimbabweans.The price freeze has been vigorously enforced by a crack team of police, military and intelligence officials, leading to arrests and fines for more than 2 000 business executives and companies accused of overpricing.”They (government) are very embarrassed with the inflation statistics, and I imagine they will not be published again until maybe the CSO comes up with figures acceptable to the authorities,” said John Robertson, a leading private economist.While the price crackdown has brought relief to hard-pressed consumers who can find goods in the stores, basic foodstuffs, such as maize-meal, sugar and cooking oil, have disappeared from shops as a result of panic buying.The government has also seized 100 public commuter buses for defying a forced fare cut, forcing operators to pull their fleets off the roads and stranding thousands of commuters.Economic analysts warn that many businesses could shut their doors rather than continue producing at a loss, which would further choke an economy the World Bank says is the fastest contracting for a country not at war.Nampa-ReutersUnofficial reports have put inflation for May at 4 500 per cent, a sharp increase from the 3 720 per cent reported by the government for April.Either figure gives Zimbabwe the world’s highest inflation rate.The Central Statistical Office (CSO) said on Friday it was working on a one-year survey that would study how events between 2001, when an economic slide escalated, and 2007 had affected inflation and whether the data was an accurate reflection of the situation in Zimbabwe.”That’s just one aspect of what we’re doing …we are also coming up with a new basket.Both are a long way off and I’m reluctant to give a time frame,” Moffat Nyoni, the acting CSO director, told Reuters.He declined to provide further details.Mugabe’s government has branded inflation its main enemy but has consistently missed targets to rein in rising prices that have pinched consumers and stoked political tensions in the former British colony in southern Africa.Officials two weeks ago ordered a rollback of all prices to June 18 levels, accusing some businesses of seeking to overthrow the government through unjustified price hikes that were designed to fuel anger among Zimbabweans.The price freeze has been vigorously enforced by a crack team of police, military and intelligence officials, leading to arrests and fines for more than 2 000 business executives and companies accused of overpricing.”They (government) are very embarrassed with the inflation statistics, and I imagine they will not be published again until maybe the CSO comes up with figures acceptable to the authorities,” said John Robertson, a leading private economist.While the price crackdown has brought relief to hard-pressed consumers who can find goods in the stores, basic foodstuffs, such as maize-meal, sugar and cooking oil, have disappeared from shops as a result of panic buying.The government has also seized 100 public commuter buses for defying a forced fare cut, forcing operators to pull their fleets off the roads and stranding thousands of commuters.Economic analysts warn that many businesses could shut their doors rather than continue producing at a loss, which would further choke an economy the World Bank says is the fastest contracting for a country not at war.Nampa-Reuters