Price blitz inspired 'anarchy'

Addressing a news conference that was also attended by some cabinet ministers, Gideon Gono said the availability of goods was improving after widespread shortages that he acknowledged were sparked by the controversial Operation Dzikisa Mutengo (Reduce Prices) which began in June.

"Of what use are cheap goods when they are not available?," said Gono who is one of veteran President Robert Mugabe's closest lieutenants.

"With the measures that we are putting in place, and the close working relationship we are having not just with manufacturers but also with the retailers, Zimbabweans can expect to see a return to normalcy on their shelves."

Gono said it was incumbent on the authorities to understand that manufacturers would not be prepared to produce goods which end up being sold at less than cost price.

"There is going to be return to normalcy, but in an environment that respects the viability of producers of goods and services and we must not be tempted to go back to the anarchy of the last three months," he added.

After consultations with producers, the government began relaxing its pricing crackdown in August after stocks of staples such as oil and sugar virtually disappeared from the shelves, and then authorised price increases.

The order to slash prices was initially welcomed by Zimbabweans who stockpiled goods before stores ran out of supplies that were rarely replaced.

Retailers had been raising their prices on a daily basis in order to keep pace with the world's highest rate of inflation which currently stands at nearly 8 000%.

Gono said that a further rise in inflation could be expected as a result of stores once more raising their prices.

"We aware that we are going to have a temporary upsurge in inflation. There is going to be an increase in inflation as we build or ramp up our engines," he added.

- AFP