Official inflation is running at 4500% – the highest in the world – though independent financial institutions estimate real inflation is closer to 9000%. In a desperate bid to halt rampant inflation, police and government inspectors have been cracking down on shopkeepers and sales managers accused of defying orders to slash prices by half.
As a result, there have been shortages of cornmeal, bread, meat and other staples, and witnesses say many shops and suppliers were cleaned out by convoys of ruling party supporters coming in after police and inspectors began enforcing the price cuts on 26 June. Factories, stores and gas stations have been unable to replace goods sold at below the original cost.
The sudden drop in prices have sparked panic buying, stampedes and near-riots by impoverished Zimbabweans. Clearly quiet diplomacy has failed. And with no food, no fuel and a dictatorial president who refuses to step down. What happens now?
