Mugabe forces price-slash

Almost two weeks after ordering sweeping price cuts, the Zimbabwean government announced a new law today 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 about 50%.

Police also announced the arrest of 17 business leaders Friday for flouting the government directive to lower their prices, state radio said.

The government ordered the price cuts in a bid to curb inflation and stop profiteering and overcharging by businesses.

The falling prices caused stampedes, panic buying and near-riots by impoverished Zimbabweans.

Official inflation is running at 4,500%, the highest in the world, though independent financial institutions estimate real inflation is closer to 9,000%.