US embassy cable - 03HARARE983

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 
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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While the CSO's CPI methodology is badly outdated, it is 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