Zimbabwe inflation: 2.2 million
HARARE, Zimbabwe - Official inflation soared to 2.2 million percent in Zimbabwe - by far the highest in the world - and has shot as high as 70 million percent in the last year for some basic goods sold on the black market, the state central bank said yesterday.
HARARE, Zimbabwe - Official inflation soared to 2.2 million percent in Zimbabwe - by far the highest in the world - and has shot as high as 70 million percent in the last year for some basic goods sold on the black market, the state central bank said yesterday.
Worsening shortages of basic goods, the deadly political and economic turmoil surrounding the March 29 national elections, and a disputed presidential runoff vote June 27 helped spur the spike in inflation in recent months.
The last announcement of official annual inflation, in February, put the rate at 165,000 percent.
Zimbabwe Reserve Bank Gov. Gideon Gono announced the new figure of 2.2 million percent at the launch of a program to sell subsidized food through selected shops and a system of coupons issued to the needy, state radio reported.
The central bank also released a schedule showing what it called distortions in prices caused by black-market trading and profiteering by businesses.
It said a 4-pound bag of sugar cost about 20 billion Zimbabwe dollars - $1 U.S. - at the government's fixed price, and 90 billion on the black market - $4.50 at the bank exchange rate.