Tuesday, August 19, 2008

Back to the drawing board

Mugabenomics keeps on rolling...toward the cliff:
The rate of inflation in Zimbabwe jumped to just over 11,250,000% in June, official figures show.

"It gained 9,035,045.5 percentage points from the May rate of 2,233,713.4%," said state media quoting the Central Statistical Office (CSO).

....High money supplies have also been fuelling hyperinflation. Critics have accused President Robert Mugabe's government of printing money to finance his election campaign and prop up the economy. Month-on-month inflation in the country accelerated to 839.3% from 433.4%.

....Earlier this month, Zimbabwe's central bank chief called for a six-month freeze on prices and wages in a bid to rein in spiralling inflation.

"Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," Reserve Bank governor Gideon Gono said.

"As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," he added.

His comments came weeks after the bank revalued its currency in an effort to curb hyperinflation - lopping 10 zeros off the Zimbabwe dollar making 10bn dollars now equal to one dollar.

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