Inflation hits 269 percent

UNCLAS HARARE 000983 SIPDIS SENSITIVE STATE FOR AF/S NSC FOR SENIOR AFRICA DIRECTOR JFRAZER USDOC FOR 2037 DIEMOND PASS USTR ROSA WHITAKER TREASURY FOR ED BARBER AND CWILKENSON USAID FOR MAJORIE COPSON E.O. 12958: N/A TAGS: EFIN ECON ETRD ZI SUBJECT: Inflation hits 269 percent ¶1. (U) Summary: Zimbabwe's official inflation has reached 269 percent, adding to the country's economic woes. End Summary. ¶2. (U) This is the year-on-year rate for April 2003, as measured by the Central Statistical Office (CSO)'s Consumer Price Index. The March-to-March rate was 228 percent. The increase does not yet take into account recent price hikes in soft drinks, postage rates, train fares and telephone charges. CSO methodology also precludes factoring in black- market rates for fuel, although transport costs are otherwise reflected in many product increases. Comment -------------- ¶3. (U) This is very troubling, but expected, news. As we have noted, the GOZ's much-ballyhooed goal of double-digit inflation for 2003 is no longer feasible. Locals joke they can almost watch prices climb if they stand in front an item on the supermarket shelf for five minutes. ¶4. (SBU) However, economists are gratified that GOZ Information Minister Jonathan Moyo has not yet compelled CSO statisticians to doctor their numbers. The opposition press reported last week that Moyo instructed business/economics reporters from the State media to make reports more upbeat. While the CSO's CPI methodology is badly outdated, it is still a professional undertaking. Whitehead