Zimbabwe Posts 7,635% 12-Month Inflation Rate

As on 22 August 2007

After four months of withholding inflation data, Zimbabwe's Central Statistical Office Wednesday released figures for July showing 12-month inflation running at more than 7,000% compared with 3,700% in March the last report it issued in April.

Cumulative inflation for one year through July totaled 7,634.5% after 7,251% in June, said the statistical office, which the government has said it is overhauling.

The release closely followed a circular sent by the Reserve Bank of Zimbabwe to local financial institutions showing the identical 7,251% figure for June – banks needed the inflation data to finalize their financial statements for the first half of this year.

The CSO release followed a leak to the media of the inflation data given to the banks.

The continued rise of inflation in Zimbabwe is bad news for Southern African officials seeking to integrate regional economies. South African Reserve Bank Governor Tito Mboweni said Wednesday that Zimbabwe’s crisis is scuttling that project.

Regional economic experts say average inflation in the region excluding Zimbabwe is expected to turn out around 17% this year, with officials targeting 9% next year.

Harare economist John Robertson told reporter Blessing Zulu that the relatively small gain over June levels might be interpreted by Harare as showing its price-cutting drive has worked - but the real prices Zimbabweans are paying for goods that have been made scarce by the operation suggest inflation may be running much higher.

Chief Economist Prosper Chitambara of the Labor and Economic Development Research Institute of Zimbabwe said the country remains the "sick man of the region," and is making Southern Africa less competitive as a whole.

Source
Code:
http://www.voanews.com/english/Africa/2007-08-22-voa39.cfm

Another previous article as on Friday, 12 May 2006

Zimbabwe's inflation tops 1,000%

Zimbabwe's inflation rate has surged past the 1,000% mark signalling that the African country is struggling to keep its economy functioning normally.

The annual rate of price growth was 1,042.9% in April, the Central Statistics Office (CSO) said, having risen 129 percentage points from March.

_41400103_zimbabwe203ap.jpg


It means average goods are about 11 times as expensive in April 2006 as they were 12 months earlier.

Zimbabwe is suffering from shortages of food, fuel and foreign currency.

President Robert Mugabe blames domestic and foreign enemies for the problems. According to the International Monetary Fund, Zimbabwe suffers the highest rate of inflation in the world.

Many analysts put the responsibility firmly at the ruling party's door, claiming the government made the situation worse when it seized control of land owned by white farmers, which triggered a sharp drop in production and exports of agricultural goods. Crumbling

Zimbabwe is a country that is blighted by crumbling urban infrastructure.

There are regular water and power cuts, while the cost of everyday foods has surged.

_41441322_zimbreaddec2004_203b.jpg


A loaf of bread now costs between Z$80,000 - Z$110,000 (79 US cents - $1.08) up from about Z$7,500 last year, when the price was controlled by the government.

A carton of orange juice costs about Z$500,000 and a kilo of beef up to Z$1m.

"Business quotations are not valid for more than two days," an office manager in Harare told the BBC News website.

"Actually I have one in front of me which says it is valid for 24 hours. Prices can literally double overnight," she said.

In January, the government introduced a Z$50,000 "bearer cheque" worth 49 US cents, to become the highest value currency note.

It is not enough to buy a copy of the daily Herald newspaper at Z$80,000.

Housing, education and transport costs also have jumped, while the unemployment rate means that almost two out of every three Zimbabweans are out of work.

The country is struggling to pay civil servants and is thought to owe money to neighbours such as South Africa and Mozambique from whom it is been importing electricity and fuel.

The latest inflation data was to have been released on Wednesday, but the announcement was postponed, which only led to further panic about the economic crisis.

The International Monetary Fund (IMF) and other international bodies are calling for reforms, but Mr Mugabe is unwilling to accept outside help or interference.

Source
Code:
http://news.bbc.co.uk/2/hi/business/4765187.stm
 
Top