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| Africa Subsaharan |
| Zimbabwe annual inflation rate soars to 11.2 million percent |
| 2008-08-19 |
| HARARE (AFP) - Zimbabwe's annual inflation rate zoomed to 11.2 million percent in June, state media reported on Tuesday, amid a ruinous political crisis which is exacerbating the southern African nation's meltdown. "Zimbabwe's annual rate of inflation surged in June to 11.2 million percent," The Herald newspaper said, adding: "It gained 9,035,045.5 percentage points from the May rate of 2,233,713.4 percent." However everyone agrees that the government estimate is a fraction of the real figure. "The actual figure could be high as 40 million percent in June," said independent economist John Robertson. "The actual figure for July could be as high as 300 million percent, while for August it could be 600 million percent," he added. Once hailed as a model economy and a regional breadbasket, Zimbabwe's fortunes have nosedived since veteran ruler Robert Mugabe seized white-owned farms and handed them over to landless blacks, often with no farming skills. The currency, once on a par with the British pound, is in freefall; unemployment is pegged at a staggering 80 percent; food and essential goods are in short supply and the vast majority of people go hungry every day. A protracted power tussle between the iron-fisted Mugabe and the opposition -- which shows few signs of being resolved after the president's widely condemned one-man re-election in June -- has added to the woes and the hunger of the common man. In the face of such adversity, many have resorted to ingenious ways to ensure their next meal. Mike Bvunzawabaya, a security guard at a large Harare supermarket, is able to buy a loaf of bread at the official price of eight Zimbabwe dollars, which he then resells for 120 dollars. "At least I am not stealing from anyone," he says, justifying the thriving sideline trade of 15 to 20 loaves he resells every day. In one Zimbabwean village, people have turned to barter, exchanging a bar of soap for maize, and are cutting down on meals. Villagers who once stashed savings from grain sales are now refusing to accept cash as they cannot afford bus fares to travel to shops and fear the money will be worthless before they arrive. In cities, some doctors ask to be paid in cash rather than charging medical insurance schemes, saying the currency would be further devalued by the time they are reimbursed. Some schools are charging school fees in fuel coupons. In Harare, a 29-year-old Air Zimbabwe worker did not go to work last week as she could not afford the transport costs to get there. "It costs me more to go to work," she said, adding that the number of travellers using the airline had dropped. The UN World Food Programme (WFP) estimates that 83 percent of Zimbabweans are living on less than two US dollars a day and that 45 percent of the total population is malnourished. Recently, the state-controlled Herald newspaper carried a story about a man who invested his retirement package in a fixed account 10 years ago. When he went to withdraw his savings, he was told the money was worth one cent after the country's central bank knocked ten zeros off the Zimbabwe dollar. Earlier this month, Zimbabwe's central bank chief urged a six-month price and salary freeze in a bid to rein in runaway inflation, with the country in the midst of an economic meltdown. "Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," The Herald quoted Reserve Bank governor Gideon Gono as saying then. "As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," said Gono. Keep up the good work, Gideon... |
| Posted by:tu3031 |
| #3 So it's not to late to get my hands on a genuine trillion Zimbob note. I got a $100 Billion note for my collection. Just waiting 'till the economy booms and I'm going to cash it in :-) |
| Posted by: Classer 2008-08-19 18:00 |
| #2 So it's not to late to get my hands on a genuine trillion Zimbob note. |
| Posted by: ed 2008-08-19 12:21 |
| #1 Where is the breaking point for these people? The only thing left to do to make it a complete joke is for Bob to announce that they are going to start enriching uranium. "Let them eat yellowcake". |
| Posted by: bigjim-ky 2008-08-19 11:15 |