Zimbabwe's official inflation tops 66,000%
The official annual inflation rate in Zimbabwe tripled in the space of a month to 66,212% in December, it was announced today.
Although it is by far the world’s highest, it is less than half the rate calculated by independent analysts.
The state Herald newspaper published the figures from the central bank today, showing a dramatic escalation from November’s already dizzying rate of 24,470%.
The newspaper said inflation for food and non-alcoholic drinks rose to 79,412% during the year, and non-food inflation stood at 58,492% in December.
In early October, the state central statistical office gave official inflation at just below 8,000%. 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.
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 price of about 3p per pound of corn meal at the dominant black market exchange was still half the price demanded on the black market and was 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%. They say supermarket receipts show the price of chicken rose more than 236,000% to 15 million Zimbabwe dollars, or about £1.07 a kilo between January 2007 and January 2008.
The price of eggs rose by 153,000% in the same period. One of the lowest increases, of about 64,000%, was for sugar, bringing independent estimates for overall food inflation to about 164,000%.
School fees increased last month by 600%, and the price of scarce petrol and rentals for housing and accommodation have soared.
Call charges for fixed lines and mobile phones also rose on Monday by up to 600%.
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currency, petrol 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 £5 last year, down from more than £100 per head in 1996, according to international financial institutions.
