The World - News from Sept. 25, 1988

Peruvian President Alan Garcia declared a freeze on state hiring and most official travel as part of a strict austerity plan to cut a soaring inflation rate, the government news agency Andina said. With inflation running at an annual rate of 355.9% as of August, Garcia has implemented an austerity package that has doubled the price of most basic foods and that freezes wages for four months. Exceptions to the hiring freeze can be granted only if a resignation opens up a post considered essential, Andina said. Garcia also ordered the sale of all but the most essential state cars and a moratorium on many public works projects.