Zim finmin criticises 'profiteering' price hikes
Zimbabwe's finance minister on Wednesday accused local businesses of profiteering for linking price increases of basic goods to exchange rate movements of a new transitional currency.
Since the RTGS dollar was introduced in February, prices of staples including sugar, cooking oil and rice have risen as much as 60%, squeezing already hard-pressed consumers and fuelling resentment against president Emmerson Mnangagwa's government.
The RTGS launched at 2.5 to the US dollar on February 22 and now trades at around 4.3 on the black market. On the official market, the RTGS weakened to 3.03 per US dollar on Wednesday, according to central bank data.
But some retailers in major cities have pegged their prices using the higher black market exchange rate, as well as offering discounts on US dollar purchases.
The year-on-year inflation rate climbed to 59.39% in February. Zimbabwe has previously said annual inflation will fall to below 10% by year-end. – Nampa/Reuters
Since the RTGS dollar was introduced in February, prices of staples including sugar, cooking oil and rice have risen as much as 60%, squeezing already hard-pressed consumers and fuelling resentment against president Emmerson Mnangagwa's government.
The RTGS launched at 2.5 to the US dollar on February 22 and now trades at around 4.3 on the black market. On the official market, the RTGS weakened to 3.03 per US dollar on Wednesday, according to central bank data.
But some retailers in major cities have pegged their prices using the higher black market exchange rate, as well as offering discounts on US dollar purchases.
The year-on-year inflation rate climbed to 59.39% in February. Zimbabwe has previously said annual inflation will fall to below 10% by year-end. – Nampa/Reuters
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