Zimbabwe's government is to distribute cheap food hampers to help people deal with inflation of 2,200,000%.

Basic products to last a family of six for a month will cost Z$100bn, the current cost of a loaf of bread, the state-run Herald newspaper reports.

It was launched by President Robert Mugabe who was re-elected last month in a controversial one-man race.

Meanwhile, a deal on pre-conditions for power-sharing talks is expected, but so far the opposition has not signed it.

"It is not that we are refusing to sign, but that the processes need to be tightened," opposition leader Morgan Tsvangirai told South Africa's Star newspaper.

The African Union has urged that a unity government be formed after Mr Tsvangirai pulled out of June's run-off election, citing state-run violence.

South Africa President Thabo Mbeki, who has been leading mediation efforts, had been expected in Harare on Wednesday for the signing.

The Movement for Democratic Change (MDC) has said that it will only consider going into talks with Mr Mugabe's Zanu-PF party on forming a unity government if there is an end to political violence and the release of its supporters from prison.

The MDC says 113 of its supporters have been killed, some 5,000 are missing and more than 200,000 have been forced from their homes since the first round of voting in March.

'First step'

Zimbabweans are suffering chronic shortages of meat, maize, fuel and other basic commodities and most shops are empty because of a price-control policy implemented by the government a year ago.

On Wednesday, it was announced that Zimbabwe's annual rate of inflation has surged to 2,200,000%.

After the March election, the government ban non-governmental organisations but then lifted a ban on aid agencies which distribute food and Aids treatment.

However, the opposition claimed food aid is not being given out in opposition areas.

The food hampers are intended to reach all households, the Herald reports.

It says it will contain items such as cooking oil, soap, flour and maize meal and those that cannot afford the hamper in rural areas would be able to arrange to pay at a later date.

"A journey of a thousand miles begins with one step," central bank governor Gideon Gono said at the launch of the hamper scheme.

"So this is but one step that we have taken as we implement strategies to improve the lives of our people."



Source : BBC