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Mugabe bans pay and price rises Mugabe bans pay and price rises
(20 minutes later)
Zimbabwean President Robert Mugabe has banned all pay rises and price increases in a new bid to curb the country's runaway inflation.Zimbabwean President Robert Mugabe has banned all pay rises and price increases in a new bid to curb the country's runaway inflation.
With Zimbabwe's annual inflation now at more than 7,600% - the highest in the world - the latest move was announced by the state-run Herald newspaper.With Zimbabwe's annual inflation now at more than 7,600% - the highest in the world - the latest move was announced by the state-run Herald newspaper.
Anyone who breaks the freeze, which applies for six months, will get a jail sentence of up to the same length.Anyone who breaks the freeze, which applies for six months, will get a jail sentence of up to the same length.
Shops have previously been told to cut prices, but most have little to sell.Shops have previously been told to cut prices, but most have little to sell.
'Pushing down inflation''Pushing down inflation'
"No one in private or public sectors can now raise salaries, wages, rents, service charges, prices and school fees..." said the Herald."No one in private or public sectors can now raise salaries, wages, rents, service charges, prices and school fees..." said the Herald.
I just wonder when they will try and reverse the laws of gravity, because this does not work John Robertson, economist Q&A: Zimbabwe's economic crisisI just wonder when they will try and reverse the laws of gravity, because this does not work John Robertson, economist Q&A: Zimbabwe's economic crisis
The changes have been made by Mr Mugabe without going before the Zimbabwean parliament.The changes have been made by Mr Mugabe without going before the Zimbabwean parliament.
The decree has to be confirmed within six months to remain in force.
Any pay increases can now only be authorised by the government's National Incomes And Prices Commission, which the president heads.Any pay increases can now only be authorised by the government's National Incomes And Prices Commission, which the president heads.
"The net effect of the charges will be to push inflation down since all increases will be by less than the current inflation rate," added the Herald."The net effect of the charges will be to push inflation down since all increases will be by less than the current inflation rate," added the Herald.
Independent Harare-based economist John Robertson said the latest move was a result of plummeting government revenues.Independent Harare-based economist John Robertson said the latest move was a result of plummeting government revenues.
"I just wonder when they will try and reverse the laws of gravity, because this does not work," he said."I just wonder when they will try and reverse the laws of gravity, because this does not work," he said.
Zimbabwe launched a 200,000 note this monthZimbabwe launched a 200,000 note this month
Mr Robertson also questioned whether the country's armed forces - which have so far been loyal to Mr Mugabe - would accept the pay freeze.Mr Robertson also questioned whether the country's armed forces - which have so far been loyal to Mr Mugabe - would accept the pay freeze.
Other analysts predicted that the wage and prices freeze would be impossible for the government to implement.Other analysts predicted that the wage and prices freeze would be impossible for the government to implement.
Once the bread basket of southern Africa, Zimbabwe's economy is now in crisis.Once the bread basket of southern Africa, Zimbabwe's economy is now in crisis.
The economic woes date back to 2000, when the government and its supporters began to forcibly seize white-owned farms.The economic woes date back to 2000, when the government and its supporters began to forcibly seize white-owned farms.