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Life under the world-s highest inflation rate
Tony Namate, The Times
February 19, 2008

http://blogs.thetimes.co.za/hartley/2008/02/19/zimbabwe-life-under-the-worlds-highest-inflation-rate/

I-m not an economist, but I don-t believe the official inflation rate of 66 000%. Its nearer 150 000%. I know this sounds crazy, but we Zimbabweans are used to it. Here are some illustrations of just how mad life has got in my country. Here prices don-t go up, they are constantly "adjusted upwards". Even the prices of things that have been on shelves for months go up all the time.

Here-s an example: A bus conductor will tell you that the bus fare has gone up halfway through the journey. When I went to Mutare in December, the bus fare was Z$1,5 million. As I write, the same fare is Z$25 million. The price of bread doubles every two-and-a-half days. And the price varies form shop to shop. A loaf of bread usually exchanges hands about three times before it reaches its final destination. It also changes price each time it exchanges hands.

In January last year, teachers went on strike, demanding a salary of Z$ 200 000 a month. Now they are demanding salaries of $Z1,7 billion a month. And they have reason. Right now they are earning the equivalent of R300 a month.
The Reserve Bank of Zimbabwe introduced a ten million Zimbabwe dollar note last month. Already, Zimbabweans are carrying large amounts of that note. The previous highest note was the $750 000 note, printed two weeks previously.
Hyper inflation effects the price of everything, no matter how small or big.

On the one hand, a cigarette will cost you Z$500 000 if you buy it on the pavement. A pint of beer is going for Z$ 7 million. On the other, most landlords want the rent paid in foreign currency, even though this is illegal. Others prefer their lodgers to pay with groceries rather than money.

How are people coping with this madness? They are no longer alarmed at the price of a scarce product — they are relieved at having found it.

Most people buy groceries in order to hedge against inflation. For example, a bottle of 2 litre Mazoe orange crush was going for Z$ 9 million in January. I bought ten bottles. The price is now Z$ 17 million as I write. Some employees now buy foreign currency as soon as they get cash. When you need Zimbabwean money, you simply sell a bit of the foreign currency.

If you ask the price of a product I a shop, the shop assistant will tell you; " you-d better buy this today as the price will be doubling tomorrow".

There is also a tragic side to inflation. I have seen people who visit their sick relatives in hospital. They hungrily eat the food meant for the patient. Some people visit their sick relatives just to eat the food. The Zimbabwe prison service has said it can no longer afford food for inmates. They are now giving prisoners a mango each for their meals.
Most people now bury their dead wrapped in cloth. Coffins now average Z$2,5 billion each.

Most hospital workers now steal medication meant for patients. Hospital patients are now required to buy their own injections, needles, drips, bandages and tablets. Junior doctors and nurse are on strike most of the time. Petrol currently sells for 50 million per litre. It was less than half that last month. The Zimbabwe dollar is now trading at seven million to the US dollar, up from Z$2 million last month.

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