Русская версияZimbabwe's Finance Minister Samuel Mumbengegwi blamed the surge in
inflation on rising food prices and Western sanctions targeting the
country's ruling elite in an interview on Tuesday, Aug.
19.
Mumbengegwi said Zimbabwe was not the only country to suffer
inflation and placed part of the blame on the increasing use of
biofuels.
"While our case has been aggravated by the illegal sanctions
imposed by the Western powers, rising food prices are a world
phenomenon because of the use of biofuel," said Mumbengegwi.
Price controls continue
"But we will continue to fight inflation by making sure that prices
charged are realistic," he said, referring to controversial
government price controls on some foods, which critics say are
forcing producers to shut up shop, worsening dire food shortages.
In a statement circulated on Tuesday, Zimbabwe's Central
Statistical Office said inflation had hit 11.2 million percent in
June, the world's highest.
The rate compares with an official inflation figure of 2.2 million
percent for May, a figure that had been deemed unrealistically low.
Some analysts say 11.2 million per cent is also conservative.
Dropping zeros
Last week, one of the Zimbabwe's leading banks - Kingdom Bank
-estimated inflation now exceeds 20 million percent. The
locally-owned bank predicted tougher times ahead for Zimbabwe in
the absence of donor support and foreign investment.
Faced with critical cash shortages, Zimbabwe's Reserve Bank at the
end of July slashed ten zeroes from the Zimbabwe dollar. One US
dollar was fetching up to 800 billion Zimbabwean dollars at the
time.
Zimbabwe, once the breadbasket of southern Africa, has been in
economic free fall since President Robert Mugabe embarked on a
chaotic land reform program in 2000 that severely damaged
commercial agriculture.
Mugabe has blamed European Union and United States sanctions
targeting mainly him and other members of his Zanu-PF party for the
situation.
Analysts say the crisis has worsened following Mugabe's disputed
and violent re-election in a June 27 presidential run-off that was
boycotted by his challenger Morgan Tsvangirai because of violence
against his supporters.
Political stalemate continues
A summit of southern African leaders in Johannesburg at the weekend
failed to convince Mugabe and the donor-backed Tsvangirai to agree
on a government of national unity, seen as the only solution to
Zimbabwe's woes.
The two leaders disagree on what powers Mugabe would retain if
Tsvangirai becomes prime minister.
Western powers such as Britain and the US are standing by to plough
money into Zimbabwe's reconstruction, but only if Tsvangirai, who
took the most votes in the last credible presidential election in
March, takes over the reins of power.
(Deutsche Welle)
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