Sunday, May 25, 2008

Zimbabwe Inflation Over 1m%, Heading for 5m%

HARARE, Zimbabwe (AP)Weary Zimbabweans are facing a new wave of price increases that will put many basic goods even further out of their reach: A loaf of bread now costs what 12 new cars did a decade ago.

Independent finance houses said in an assessment Tuesday that annual inflation rose this month to 1,063,572 percent based on prices of a basket of basic foodstuffs. Economic analysts say unless the rate of inflation is slowed, annual inflation will likely reach about 5 million percent by October.

As stores opened for business Wednesday, a small pack of locally produced coffee beans cost just short of 1 billion Zimbabwe dollars. A decade ago, that sum would have bought 60 new cars.

To ease cash shortages, Zimbabwe recently introduced a $500 million note, see BBC report here.

Thanks to
SCSU Scholars for the pointer.

8 Comments:

At 5/25/2008 1:01 PM, Anonymous Anonymous said...

The power of socialism ... no wonder Congress woman Waters is threating nationalization

 
At 5/25/2008 3:57 PM, Blogger juandos said...

Well I guess this inflation rate is a pretty fair indicator that Mugabe's Obesity Tourism Strategy didn't quite work out as hoped...

 
At 5/25/2008 3:57 PM, Blogger juandos said...

This comment has been removed by the author.

 
At 5/25/2008 8:11 PM, Blogger Craig said...

"As stores opened for business Wednesday, a small pack of locally produced coffee beans cost just short of 1 billion Zimbabwe dollars. A decade ago, that sum would have bought 60 new cars."

10 years ago a new car cost $16.7 million in Zimbabwe?

 
At 5/26/2008 9:07 AM, Blogger OBloodyHell said...

> 10 years ago a new car cost $16.7 million in Zimbabwe?

Hey, a billion here, a billion there.

Sooner or later, it adds up to real money.


(Thanks, Sen. E.D.)

 
At 5/26/2008 11:19 PM, Anonymous Anonymous said...

why do you keep using the term inflation like its something that happens. inflation is nothing more than the government printing money and giving it to them selves, something the usa does as well, to the detriment of its citizens

 
At 5/27/2008 4:47 AM, Blogger Thomas Blair said...

Anon 11:19 is correct. Inflation is purely a monetary phenomenon.

 
At 9/17/2008 1:24 AM, Blogger ng2000 said...

Valuable resource of zimbabwe news summaries: http://www.ng2000.com/fw.php?tp=zimbabwe

 

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