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African News

Zimbabwe Announces Price Cut Law

Saturday, July 07, 2007 9:35:03 PM
By ANGUS SHAW

People wait in a queue to buy sugar in Harare, Saturday, July 7, 2007. Almost two weeks after ordering sweeping price cuts, the Zimbabwean government announced a new law Saturday enabling it to enforce the reductions. Stores shelves remained empty of corn meal, bread, meat and other basic foods after police and government inspectors raided shops and businesses to force them to slash prices of basic commodities by around 50 percent. (AP Photo)HARARE, Zimbabwe (AP) - Zimbabwe's government announced a new law Saturday making it an offense to defy steep price cuts ordered in an effort to control runaway inflation and a growing economic crisis.

A rush to buy cheaper goods have depleted stores of corn meal, bread, meat and other staples since the government ordered a 50 percent cut in the price of basic goods last week. The falling prices have caused stampedes and near-riots in shops. Some businesses have shut down.

Police and government inspectors have raided businesses to force them to slash prices. The price of gasoline was also halved, creating long lines at stations — most of which were out of supplies Saturday.


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