Skip to comments.Zimbabwe Inflation Tops 100,000 Percent
Posted on 02/21/2008 6:32:06 AM PST by TigerLikesRooster
Zimbabwe Inflation Tops 100,000 Percent
Thursday February 21, 9:01 am ET
By Angus Shaw, Association Press Writer
World Record Breaking Inflation in Zimbabwe Soars Past 100,000 Percent
HARARE, Zimbabwe (AP) -- The official rate of annual inflation in Zimbabwe has rocketed past the 100,000 percent barrier, by far the highest in the world, the state central statistical office said Thursday. Second-placed Iraq has inflation of just 60 percent, according to international estimates.
In a brief statement, the statistics office said inflation rose to 100,580 percent in January, up from 66,212 in December. A further breakdown of its calculations would be released later, officials said.
The new official figure was still well below the rate calculated by independent analysts. They estimate the real inflation is closer to 150,000 percent, citing supermarket receipts showing the price of chicken rose more than 236,000 percent to 15 million Zimbabwe dollars, or about $2.15, per kilogram (2.2 pounds) between January 2007 and January 2008. Slower increases in prices of sugar, tea and other basics brought down the overall average inflation.
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currency, gasoline 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 accompanied by political violence and turmoil.
Economic hardship is a key issue in national elections scheduled for March 29 in which President Robert Mugabe, who turns 84 on Friday, is facing the biggest challenge to his hold on power since he led the nation to independence in 1980.
Inflation, food shortages and the crumbling of power, water, sanitation, roads, phones and communications and other utilities have fueled deep divisions in the ruling ZANU-PF party.
In early October, the state central statistical office gave official inflation at just below 8,000 percent. 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.
November's already dizzying rate of 24,470 percent was announced in January and earlier this month the official rate for December was given as 66,212 percent, a dramatic escalation in the space of a month.
The National Incomes and Prices Commission, the government's price control body, this month 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 still roughly half the price demanded on the black market and were unlikely to guarantee regular supplies to food stores.
Executives at a milling company producing corn meal said the price increase allowed by the government was already overtaken by soaring production costs and gasoline prices. The National Bakers Association said bread shortages were set to worsen unless the price of a loaf was nearly doubled to more than 5 million Zimbabwe dollars (55 U.S. cents at the dominant black market exchange rate) for a regular loaf.
Inflation in southern Africa is mostly in single digits.
Neighboring South Africa recorded inflation last year of about 5 percent and in northern neighbor Zambia inflation rose slightly to just below 9 percent.
In Africa's fastest shrinking economy, per capita gross domestic product in Zimbabwe fell from about $200 in 1996 to about $9 a head last year.
I’m just glad that evil Ian Smith is gone. /s
Mugabe just keeps printing more money so the military thugs will have the means to get what they need. Everyone else is irrelevant.
Where can one buy currency from Zimbabwe? I rather enjoy having a token bit of foreign currency. Not looking for investments in any form. I just like having some paper money from other countries - especially unusual looking, or otherwise interesting currency.
“However, the so-called ‘core’ inflation rate, which does not include volatile food and energy prices, is currently running at 2.3 percent.”
Im thinking the Zimbabwean version of FreeRepublic is rife with posts about how “this is great for exports. Keep getting that dollar lower, Mr Bernankehammed!’
Obviously they need a uniter like Barack Hussein Obama to get everyone pulling together to get this straightened out.
All the Democrats from Carter to Clinton have praised Mugabe and put him in office and supported him and kept him in power. Mugabe is a brutal evil dictator who has murdered millions and destroyed his country’s economy. The Democrats should take responsibility for what they have done.
(Overheard at a coffee shop in Zimbabwe)
Damn! I’ve got one of those adjustable rate mortgages!!
I confess I was unaware that Iraq’s inflation rate is 60%. Wondering why I haven’t seen that blasted all over the MSM (or reported here, for that matter).
Does anyone know whether that 60% is lower than it was a year ago, or is it going higher?
Zimbabwe wiped out its own food production in a fit of racist pique. Crushing what production remained by price regulation is one of those one-two punches that no industry can survive.
From the article, sounds like this will do just as well as their currency:
Correct me if I’m wrong, but isn’t the name of the President of Zimbabwe, Jimmy JaCarterbwa?
When money has ceased to have value, barter is all you have left. If you’ve got nothing to trade you’re in deep doo doo.
Just pray that you can work for the farmer for a share of the crop.
The US dollar has lost about 50% of it’s value since Bush took office. Mostly during the last 3 years. Double digit inflation is coming to the US for the first time since that brain dead moron Carter was president.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.