Zimbabwe: More Cash Makes Food Expensive

source: allAfrica
UN Integrated Regional Information Networks

18 March 2008
Posted to the web 18 March 2008

Harare

Extra cash in the pockets of civil servants ahead of the elections and a spiralling foreign exchange rate has pushed up the prices of basic foodstuffs and essential items by 300 percent in the last few days, said economists.

“There has been quite a spike [in prices] in the past week,” said John Robertson, an independent economist based in the capital, Harare. Retailers had hiked up prices because people’s spending power had increased ahead of the elections, he added.

The average salary of a civil servant went up from Z$100 million in December 2007 to Z$500 million in February 2008. Salaries were revised again last week: a government employee can now take home more than Z$4billion a month.

While the government has [continue reading]



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