HomeBusiness Digest Let's unite in arresting inflation'

Let’s unite in arresting inflation’


Itai Mushekwe

IN a move signaling that the central bank cannot operate as an island in dealing with Zimbabwe’s economic crisis, governor Gideon Gono yesterday appealed to other stakeholders to work

together to arrest inflation, the country’s so-called enemy number one.


Presenting his monetary policy review statement in Harare yesterday, Gono called for a united approach to achieve positive results in his economic turnaround efforts.


“As we elevate our bitter fight against the inflation scourge, it is imperative that labour, government, business and civil society earnestly recommit to a progressive social contract which anchors a balanced incomes and pricing framework as part of measures to stabilise the macroeconomic environment,” said Gono.


His sentiments sounded conciliatory, unlike in past monetary policy reviews where the governor has dictated policy to industry and threatened to descend on defiant economic players.


He called for peace with the tourism sector which he recently accused of hoarding foreign currency instead of handing it over to the central bank as required by law.


He also called for consensus with producers and service providers so that they play an instrumental role in coming up with genuine pricing regimes.


“We call upon producers and service providers to throw their weight in the inflation fight by aligning price reviews to genuine changes in production costs, as opposed to ad hoc speculative pricing,” said Gono.


Gono’s call for collective responsibility in resolving the economic crisis come amidst crippling fuel shortages, depleted food stocks and soaring inflation. Inflation bucked a downward trend in April, surging to 129%. As of this month the rate has shot up to 164,9%. The central bank’s economic recovery plans remain largely illusionary on the back of damaging political policies being implemented by the government.

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