Zimbabwe hikes fuel price as inflation rockets

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Zimbabwe’s energy regulator has raised the price of fuel by 12%, the second increase this month, raising fears that it could deepen the economic crisis in the country and lead to a further rise in inflation.

An IMF delegation which visited the country recently said the inflation rate had reached almost 300% in August.

The Zimbabwe Energy Regulatory Authority did not give reasons for the increase.

Earlier this month, fuel prices were raised by 27% and was followed by a 320% increase in the cost of electricity, triggering a spike in the price of basic goods.

The public workers union has called a meeting to consider embarking on a strike after the government rejected its demand to have workers paid in US dollars.

On Tuesday, Zimbabwe’s central bank said it would introduce a new currency within two weeks to ease a cash shortage and to reduce transaction costs.

Source: BBC

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