The Indian people and the government are both quaking with fear with inflation hovering at around 8%. The people can barely make two ends meet with prices soaring, and the government knows that if prices don't fall, the government will.
But India is not the only nation grappling with rising inflation. Even people from wealthy countries are crying everyday over ever increasing prices of bread and vegetables. However, they can all thank their lucky stars cause they are sitting pretty compared to Zimbabwe.
But India is not the only nation grappling with rising inflation. Even people from wealthy countries are crying everyday over ever increasing prices of bread and vegetables. However, they can all thank their lucky stars cause they are sitting pretty compared to Zimbabwe.
Do you guys want to even guess the inflation rate in Zimbabwe??
355,000%!
No, it is not a typo. The inflation in Zimbabwe for the month of March/April 2008 rose to 355,000%! Yes, 355,000 per cent! It more than doubled from the February/March figure of 165,000%. Currency traders ceased operations last week on Thursday and Friday because of the free fall of the ZWD and annual inflation certainly exceeded 2 million percent.
It is indeed a miracle that the Zimbabwean economy is still surviving as the prices seem to be rising to unprecedented proportions. Inflation surged between February and March following the sudden rise in money supply that flooded the economy to finance the 2008 elections.
The economy is in real free fall right now as inflation accelerates rapidly making life almost unbearable. It is predicted that by the end of the month, prices could be doubling everyday. Almost 80% of the nation is unemployed. The Zimbabwean central bank has introduced $500 million bearer cheques (or currency notes) for the public, and $5 billion, $25 billion, $50 billion agro-cheques for farmers. As the consequence of this devaluation, huge anomalies are developing in the system and prices, charges, service fees, etc can be dramatically lower than the next simply because the organizations have not had time to adjust their costings or figures.
Mr. Mugabe has certainly upped the ante by coming out and publicly saying he will not give up power even if he loses. He has openly promised 'War' if the opposition wins. That indeed poses serious questions as to weather the economy can be contained anytime soon. A sausage sandwich sells for Zimbabwean $50 million and a 15-kg bag of potatoes cost Zimbabwean $260 million.
Phew!!!
355,000%!
No, it is not a typo. The inflation in Zimbabwe for the month of March/April 2008 rose to 355,000%! Yes, 355,000 per cent! It more than doubled from the February/March figure of 165,000%. Currency traders ceased operations last week on Thursday and Friday because of the free fall of the ZWD and annual inflation certainly exceeded 2 million percent.
It is indeed a miracle that the Zimbabwean economy is still surviving as the prices seem to be rising to unprecedented proportions. Inflation surged between February and March following the sudden rise in money supply that flooded the economy to finance the 2008 elections.
The economy is in real free fall right now as inflation accelerates rapidly making life almost unbearable. It is predicted that by the end of the month, prices could be doubling everyday. Almost 80% of the nation is unemployed. The Zimbabwean central bank has introduced $500 million bearer cheques (or currency notes) for the public, and $5 billion, $25 billion, $50 billion agro-cheques for farmers. As the consequence of this devaluation, huge anomalies are developing in the system and prices, charges, service fees, etc can be dramatically lower than the next simply because the organizations have not had time to adjust their costings or figures.
Mr. Mugabe has certainly upped the ante by coming out and publicly saying he will not give up power even if he loses. He has openly promised 'War' if the opposition wins. That indeed poses serious questions as to weather the economy can be contained anytime soon. A sausage sandwich sells for Zimbabwean $50 million and a 15-kg bag of potatoes cost Zimbabwean $260 million.
Phew!!!
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