Zimbabwe inflation triples in a month... To 66,212 per cent
Crazypickney said
13:04 02/19 2008
The official rate of annual inflation in Zimbabwe tripled in the space of one month to 66,212 per cent in December, by far the highest in the world, but less than half the rate calculated by independent analysts.
The state Herald newspaper published the figures from the central bank Friday, showing a dramatic escalation from November's already dizzying rate of 24,470 per cent.
The newspaper said inflation for food and non-alcoholic drinks rose to 79,412 per cent during the year, and non-food inflation stood at 58,492 per cent in December.
In early October, the state central statistics office said the official inflation rate was just below 8,000 per cent. It then suspended its monthly updates on inflation because there was not enough in the shortage-stricken shops to calculate a regular basket of goods.
Sharp increases
The National Incomes and Prices Commission, the government's price control body, this week allowed sharp increases in the prices of the corn meal staple, sugar, bread and other basics in a bid to restore viable operations by producers and return the goods to empty shelves.
But the new prices were only about half that demanded for goods sold on the black market and were unlikely to guarantee regular supplies to food stores.
Even the Herald predicted that "in most cases, the products will be available only immediately after the price increases" and would disappear again as production costs rise.
Independent analysts estimate the real annual rate of inflation is closer to 150,000 per cent. They cite supermarket receipts showing the price of chicken rose more than 236,000 per cent to 15 million Zimbabwean dollars, or about US$2.15 a kilogram between January 2007 and January 2008.
The price of eggs rose by 153,000 per cent in the same period. One of the lowest increases, of about 64,000 per cent, was for sugar, bringing independent estimates for overall food inflation to about 164,000 per cent.
School fees increased last month by 600 per cent, and the price of scarce gasolene and rents for housing have soared.
Call charges for fixed lines and mobile phones also rose on Monday by up to 600 per cent.
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currencies, gasolene and most basic goods in an economic meltdown blamed on disruptions in the agriculture-based economy after the often-violent seizures of thousands of white-owned commercial farms began in 2000.
The country has Africa's fastest shrinking economy, with per-capita gross domestic product sinking to less than US$10 last year, down from more than US$200 per head in 1996, according to international financial institutions.
- AP
Major Krazy said
15:03 02/19 2008
serious ting in Zimbabwe!!! The place messed up! "The country has Africa's fastest shrinking economy..."
The official rate of annual inflation in Zimbabwe tripled in the space of one month to 66,212 per cent in December, by far the highest in the world, but less than half the rate calculated by independent analysts.
The state Herald newspaper published the figures from the central bank Friday, showing a dramatic escalation from November's already dizzying rate of 24,470 per cent.
The newspaper said inflation for food and non-alcoholic drinks rose to 79,412 per cent during the year, and non-food inflation stood at 58,492 per cent in December.
In early October, the state central statistics office said the official inflation rate was just below 8,000 per cent. It then suspended its monthly updates on inflation because there was not enough in the shortage-stricken shops to calculate a regular basket of goods.
Sharp increases
The National Incomes and Prices Commission, the government's price control body, this week allowed sharp increases in the prices of the corn meal staple, sugar, bread and other basics in a bid to restore viable operations by producers and return the goods to empty shelves.
But the new prices were only about half that demanded for goods sold on the black market and were unlikely to guarantee regular supplies to food stores.
Even the Herald predicted that "in most cases, the products will be available only immediately after the price increases" and would disappear again as production costs rise.
Independent analysts estimate the real annual rate of inflation is closer to 150,000 per cent. They cite supermarket receipts showing the price of chicken rose more than 236,000 per cent to 15 million Zimbabwean dollars, or about US$2.15 a kilogram between January 2007 and January 2008.
The price of eggs rose by 153,000 per cent in the same period. One of the lowest increases, of about 64,000 per cent, was for sugar, bringing independent estimates for overall food inflation to about 164,000 per cent.
School fees increased last month by 600 per cent, and the price of scarce gasolene and rents for housing have soared.
Call charges for fixed lines and mobile phones also rose on Monday by up to 600 per cent.
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currencies, gasolene and most basic goods in an economic meltdown blamed on disruptions in the agriculture-based economy after the often-violent seizures of thousands of white-owned commercial farms began in 2000.
The country has Africa's fastest shrinking economy, with per-capita gross domestic product sinking to less than US$10 last year, down from more than US$200 per head in 1996, according to international financial institutions.
- AP