News Of Economy

Zimbabwe’s inflation mounts to 3,714 percent

April 21, 2012

As the day passes, Zimbabwe’s inflation rates became sorer. In the previous month, Zimbabwe’s rate of inflation has touched new heights as it surged to 3,714 percent and The International Monetary Fund (IMF) warn that Zimbabwe’s annual rate of inflation will reach more than 6,400 per cent next year. Country’s economy has totally dilapidated, as Mugabe government has failed in all fronts. Country’s debts has increased drastically, its foreign reserve has reduced, which leaves its national bank penurious. Nation’s financial condition has shattered as its prices rose about 36-fold between the end of April last year and the same day this year. The Central Statistics Office said that prices of all needed articles are soaring incessantly. Employment has fallen and Zimbabweans find it difficult to pay its increasing power bills, even life has become as difficult as most of compatriots find it difficult to make two ends meet. Prices of food like meat, vegetables, cooking gas has risen to its all time high and transportation forgets it. The annual inflation rate has been on a roller-coaster ride since December 2004 when it shot up to 622.8 percent. In March this year, it breached the 2,000 percent mark to reach 2,200 percent. International Monetary Fund had projected that Zimbabwe’s inflation would not surge more than 3,000 marks to the end of the present financial year, but it has crossed the all projected limits. Labor unions are demanding the government and employers raise the minimum wage to the poverty level, currently pegged at $6,800 on the official market but $50 on the black market. Due to a increasing economic distress, black marketeers are thriving and even farmers, who receive gas as government subsidy to pump water for irrigation purposes are selling it into black market for they make a kill by selling the gas itself. Despite good rains, the primary sector, which is the backbone of the country’s economy it has taken a back seat. Zimbabwe’s only ruler since its independence, Mugabe, blames Western sanctions for the Zimbabwe’s economy, but the bitter truth is that Mugabe is the solely responsible for the country’s present conditions. Mugabe’s controversial policies such as his seizure of white-owned farms and redistributing it among the blacks is at the root cause for decline in agriculture productivity. Keeping a close eye on the hyperinflation, Mugabe government has signed a law establishing an incomes and prices commission, which would set prices and wages. But all such efforts appear non-starters, until and unless the country’s productivity, foreign currency and its foreign policies do not markedly improve. Image: sfgate Via: presstv

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