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Zimbabwe Nov inflation quickens to 1,098.8 pct
Reuters
December 11, 2006
http://za.today.reuters.com/news/newsArticle.aspx?
HARARE (Reuters) - Zimbabwe's annual
inflation quickened to 1,098.8 percent in November from 1,070.2
percent previously, highlighting an eight-year economic recession
critics blame on government incompetence.
The country's inflation rate is the
highest in the world and is the clearest sign of an economic and
political crisis also shown in unemployment above 80 percent, shrinking
gross domestic product and shortages of foreign currency, food and
fuel.
The Central
Statistical Office also said on Monday month-on-month inflation
rose to 30.1 percent compared to 27.5 percent previously.
President Robert Mugabe's government
has projected that inflation -- which it has labelled the country's
number one enemy -- would slow to between 350-400 percent by the
end of next year although analysts are wary of the forecast.
Analysts say only drastic measures
such as curbing excessive state spending and halting the practice
of handing cheap funds to farmers and state enterprises -- which
has been blamed for driving money supply growth -- would help bring
inflation down.
Zimbabwean workers have borne the brunt
of inflation as they grapple with escalating increases in the price
of basic commodities, transport fares, education and medical fees
while salaries have legged behind.
The government has accused businesses
of profiteering at the expense of ordinary citizens and is working
on a law that will effectively require manufacturers to justify
raising prices.
Last week it set maximum fees for private
schools.
Critics blame Mugabe's politics for
plunging the former bread basket of southern Africa into crisis,
particularly his government's drive to seize land from white commercial
farmers for landless blacks.
But Mugabe says Zimbabwe has fallen
victim to a Western campaign of sabotage to punish him for the land
seizures.
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