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Mugabe grapples with hyper-inflation

Zimbabwe - Hit by 5,000% inflation
Zimbabwe - Hit by 5,000% inflation

Zimbabwean President Robert Mugabe has taken a new swipe at his country's ailing business sector, accusing bosses of fanning record inflation by overcharging before the imposition of price cuts.

Retailers and manufacturers are struggling to absorb the impact  of government-ordered price cuts.

Mr Mugabe said efforts to revive the economy had been undermined by business malpractices and sanctions imposed by the West.

The inflation rate is now believed to be well over 5,000%, which means prices have been rising several times a day.

The government ordered prices to be cut in half on 26 June.

Hundreds of bosses who failed to heed the edict have since been  arrested and slapped with fines as part of the so-called Operation Reduced Prices.

President Mugabe has said the government is willing to work with the business community.