No progress seen in latest Zimbabwe talks

The men have held several face to face meetings, but have failed to agree on allocation of key ministries, angering Zimbabweans and diminishing hopes that last month's power-sharing deal could end devastating economic turmoil.

Opposition spokesman Nelson Chamisa said the leaders met for about an hour Friday.

"It's still a tale of a deadlock. There is now consensus that there is indeed a deadlock, so the intervention of the mediator becomes both imperative and inevitable," Chamisa said.

He was unsure when the mediator, former South African President Thabo Mbeki, would travel to Harare.

"We're hoping that maybe by the end of next week. Mugabe says he will be busy this weekend."

Official data Thursday showed annual inflation surged to 231 million percent in July, reminding the leaders of the dire economic situation and the need to form a government quickly to tackle the crisis.

Under the deal, Mugabe, in power since Zimbabwe's independence from Britain in 1980, would retain the presidency and chair the cabinet, while Tsvangirai as prime minister would head a council of ministers supervising the cabinet.

(Reporting by Nelson Banya; Editing by Matthew Tostevin)