Zimbabwe’s annual inflation rate soared to 11.2 million per cent in June,the central statistical agency has said.
“Zimbabwe’s annual rate of inflation surged in June to 11.2 million per cent,”
“It gained 9 035 045.5 percentage points from the May rate of 2 233 713.4%.”
But economists believe the actual inflation figure is higher than the official figures.
Once a regional economic model, Zimbabwe is in the throes of economic crisis with an astronomical inflation rate and at least 80% of the population living below the poverty threshold, often skipping meals and walking long distances to stretch their income.
Earlier this month Zimbabwe’s central bank chief urged a six-month price and salary freeze in a bid to rein in runaway inflation, with the country in the midst of an economic meltdown.
“Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency,” Gono is quoted as saying.
“As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months,” said Gono.
His proposal came as the bank unveiled on August 1 a new series of bank notes after knocking off 10 zeros from its currency.
The central bank re-denominated the Zimbabwean dollar currency on July 30 by slashing 10 zeros but this has had no effect on stemming the devaluation of the currency.
When it was re-denominated the Zimbabwean dollar was trading at Z$140 billion to the U.S. dollar, or Z$14 in the re-denominated currency.
Currently the unit trades at Z$100 to the greenback, or Z$1 trillion in the old currency.