zimbabwe inflation hits 2.2m%

Zimbabwe’s official inflation rate has escalated to 2.2m%. This sounds unbelievable, i know. This has meant that the cost of a loaf of bread in the state equates to about one-third of a teacher’s monthly salary. (A loaf of bread cost 200 million Zimbabwe dollars – enough for 12 new cars a decade ago). This rate has been released by the government, but independent economists reject this figure, saying the true rate could be significantly higher. One of Zimbabwe’s most respected economists, John Robertson, said that while inflation was probably about 2m% in May, it soared again last month. “I think the June figure is more likely to be 10m% and it could turn out 15m%,” he said.

Eight weeks ago, the central bank issued a $50bn note, the largest available. At the time it was worth about £2. It is now worth 18p. Last year, the government tried to curb inflation with price controls that forced shops to slash their prices by up to 80%. But that only led to a short-lived spending spree when people bought up food, electrical goods and furniture at a fraction of their real value. In the economic meltdown, manufacturing industries, running at below 30% of their capacity, reported growing absenteeism by workers facing soaring commuter bus fares. Hyperinflation has caused a cash shortage because the government cannot print notes fast enough to meet demand. Ordinary people are permitted to draw only $100bn (36p) a day from their banks.

Mental. Where to now?

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~ by k-rock and l-jive on July 17, 2008.

One Response to “zimbabwe inflation hits 2.2m%”

  1. Hey – It’s great to see this situation getting coverage in the blogosphere.

    Last summer Nelson Mandela brought a group of really dedicated individuals together – ex heads of state and Nobel laureates – to work on solving global issues. His hope for the new group, The Elders, is for them to “speak freely and boldly, working both publicly and behind the scenes on whatever actions need to be taken”. They’re working on the crisis in Zimbabwe now, and they want your help.

    There are so many issues in dire need of attention right now, but human rights ties them all together. The Elders launched the Every Human Has Rights campaign to commemorate the 60th Anniversary of the Universal Declaration of Human Rights, and celebrate human rights as that common thread that weaves our struggles and our victories together.

    We’re asking the blogosphere to take part. Would you be willing to add a link from your page to the Every Human Has Rights website? We also have badges and flash widgets so bloggers can show support for the campaign.

    We’re trying to get as many people as possible to sign a personal pledge to uphold the principles of the Universal Declaration. We have action partners to help people get more involved. We have tools so people can bring the ‘rights perspective’ to their own organization’s events. We’re doing everything we can to bring people together to stand up for human rights.

    We need bloggers. We need you. Please join our effort.

    All the best,
    Carly Scott
    Every Human Has Rights,
    campaign team
    http://www.everyhumanhasrights.org

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