Zim inflation drops

HARARE – Zimbabwe’s inflation rate fell by 78,7 per cent in April to 505 per cent, an official newspaper reported on Monday, as the country presses on with efforts to bring inflation down to less than 200 per cent by the end of the year.

The Herald attributed the drop from the previous month’s figure of 583,7 per cent to the launch of a new monetary policy in December 2003. In launching the tighter policy, Central Bank Governor Gideon Gono said he was confident that inflation would be brought down to less than 200 per cent by December 2004.Inflation has created extreme hardships for ordinary Zimbabweans, who have seen wages eroded and prices in shops going up on a regular basis.Foreign currency shortages and a flourishing black market for hard cash are blamed for fuelling inflation.Foreign currency auctions introduced by the central bank last year have resulted in US$333,5-million flowing into the official market in the first three months of this year, compared with US$302-million for the whole of last year, according to the bank.- Nampa-AFPIn launching the tighter policy, Central Bank Governor Gideon Gono said he was confident that inflation would be brought down to less than 200 per cent by December 2004.Inflation has created extreme hardships for ordinary Zimbabweans, who have seen wages eroded and prices in shops going up on a regular basis.Foreign currency shortages and a flourishing black market for hard cash are blamed for fuelling inflation.Foreign currency auctions introduced by the central bank last year have resulted in US$333,5-million flowing into the official market in the first three months of this year, compared with US$302-million for the whole of last year, according to the bank.- Nampa-AFP