New cash limit sparks wave of price hikes (Zimbabwe)

[Newsjock]

Source: Zimbabwe Herald

Thousands of depositors in Harare and Bulawayo yesterday thronged banking halls to withdraw money following the increase of the weekly withdrawal limit from $100 million to $500 million, but their excitement was shortlived as businesses again wantonly increased the prices of goods and services.

Some shops in both cities responded to the increase in the withdrawal limit by raising prices unilaterally, prompting the National Pricing and Incomes Commission to intervene in Harare.

At Afro-Foods along Park Street in Harare, a 2-litre bottle of cooking oil that was selling for $50 million before the new withdrawal limit went up to $450 million while the price of a 12,5kg bag of maize-meal rose from $92 million to $960 million. In the same shop, a 2kg packet of rice, which was at $43 million yesterday, was being sold for $460 million.

... A kilogramme of beef was selling at between $750 million and $1 billion yesterday.

Read more: http://www1.herald.co.zw/inside.aspx?sectid=1542&cat=1

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This newspaper is generally thought to be government-controlled, so assume that the situation is actually worse than what is reported here.

[tblue]

1. Is this US$??????

Ay yi yi!

[truedelphi]

2. When things are like that here,k it will also be awful that

We will have to pay for our newly minted billionaire status through the income tax.

Maybe we better not get Obama to increase the tax rates on those who make more than $ 250K after all.

[excess_3]

3. I have no sympathy for these mega-rich people .n/t

[Posteritatis]

4. The black market exchange rates tend to use exponents these days

The government's just saying This Is What The Rate Is, which of course isn't how that sort of thing works in reality. Elsewhere you're seeing numbers like "quadrillion" or even more.