Zimbabwe sets 21-day price freeze

Inflation in Zimbabwe is the highest in the world

Zimbabwe has embarked on a three-week price freeze, as part of wider plans to strengthen the country's weakened economy, state media have reported.

The news follows a decision by central bank governor Dr Gideon Gono to lop three zeroes off the Zimbabwe dollar.

The freeze was needed because some firms had used the measure to hike the cost of goods unilaterally, reported Zimbabwe's Sunday Mail.

The move comes amid soaring inflation, which has hit record levels.

Opposition

The freeze started on 1 August and runs to 21 August, when the old bank notes will cease to be legal tender.

"No trader, manufacturer, wholesaler, dealer or retailer of any commodity" will be able to increase the price of the commodity "by any amount", Zimbabwe's industry and international trade minister Obert Mpofu told the Sunday Mail.

Local firms say they need to raise prices to counter inflation, which - at about 1,200% - is the highest in the world.

City-based Zimbabweans have suffered significantly in the face of fuel, food and electricity shortages, as well as poor infrastructure, in the wake of inflation.

Following the new currency initiative, Dr Gono has been threatened by those opposed to the plan, the government-owned Daily Herald reported.

"Let me warn those that want to derail our economic recovery programme that they will be arrested," minister of state for national security Didymus Mutasa told the newspaper.