Posted on 08/23/2007 5:29:37 PM PDT by blam
Zimbabwe inflation rate hits 7,600 pc
By Sebastien Berger, Southern Africa Correspondent
Last Updated: 1:04am BST 23/08/2007
Zimbabwe issued its first official inflation statistics for three months yesterday, revealing a new record high and confirming the ineffectiveness of Robert Mugabe's price control campaign.
Figures from Zimbabwe's Central Statistical Office showed inflation reached 7,634.8 per cent in July, the highest in the world. It was 7,251.1 per cent in June and 4,530 per cent in May, it added.
The precision of the inflation numbers is remarkable given the chaos of the Zimbabwean economy and some analysts believe the real figure is much higher.
The International Monetary Fund has predicted inflation could reach 100,000 per cent by the end of the year and Christopher Dell, the outgoing US ambassador, suggested 1.5 million per cent.
Publication of the figures had been suspended as Zimbabwe prepared to impose price controls two months ago. The new statistics show that as well as ensuring empty supermarket shelves, by effectively ordering firms to produce and sell at a loss, the measures failed to tame inflation. Many goods, particularly fuel, are available only on the black market.
Tony Hawkins, of the University of Zimbabwe's graduate school of business, said inflation was likely to accelerate further.
"The gradual relaxation of price controls, coupled with the explosive growth in money supply as well as the movement in the exchange rate on the parallel market all point to an upsurge in inflation around September," he said.
"I'd be surprised if they can keep it below 10,000 per cent by the end of the year."
Some price controls were relaxed yesterday, with increases approved for the cost of several basic goods including sugar, cooking oil, and transport fares.
Does anyone recall what the infaltion rate was in Germany toward the end of the Weimar Republic? This is starting to sound awfully close.
Can’t they just print more money? And raise the minimum wage? And have free housing and food for the poverty stricken? Have a Great Society program? midnight basketball might help.
/s
When did Jimmah Carter go there and be President?
They made their bed——————
Wasn’t he involved with the destruction of Rhodesia and brought this guy to power????
Can I get a bank account offering 1.5 million percent? That would be pretty sweet.
"The cabinet also denied that Mr Mbeki blamed Britain for Zimbabwe's economic woes. According to a document circulating among diplomats ahead the summit that purported to be a draft of Mr Mbeki's position at the meeting, and which was reported on in the Guardian, the South African leader joined Mr Mugabe in accusing the UK of leading a campaign of western sanctions to bring Zimbabwe's economy to its knees."
Personally I think the Carter Institute/Foundation, etc. should all move there. Doesn’t Jimmey have any 21st century sympatico with the leaders he backed and pushed upon everyone?
IIRC, the currency went from around 40 marks to the US dollar, to 3 or 4 billion.
Better still the U N. should move there!!
“32400%.”
Thus the photos with wheelbarrows full of money and spend your paycheck as soon as you got it. 5 minutes delay and you lost money.
africawinsagain...
Young Freepers will probably not understand the “nuances” of that image. Back in the day, though, I bought the line that it was greedy businessmen that were driving prices higher.
If you bought a house a couple of years ago in Zimbabwe, you could pay it off today with an egg.
I wonder what the inflation rate was in Rhodesia?
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