Inflation in Zimbabwe soared to 613% in January, the state Central Statistical Office said on Tuesday.
Zimbabwe is suffering its worst economic crisis since independence from Britain in 1980, blamed largely on disruptions in the agriculture-based economy caused by years of drought and the often-violent seizure of thousands of white-owned commercial farms for redistribution to new black farmers.
Inflation hit a record 623% in early 2004. Last month, the central bank predicted it would reach 800% by March, the highest rate in the world.
Prices of food and nonalcoholic drinks have risen 785,5% since last January, the statistical office said in its monthly report. Non-food items are up an average 533%.
The highest price increases recorded during the year were for postal services, up 3 000%, bicycles, 2 687%, and medicines, 1 367%.
On a month-to-month basis, prices were up 27% over December.
An average family of five now needs a monthly income of at least 20-million Zimbabwe dollars ($202) to survive in reasonable conditions, including eight million Zimbabwe dollars ($80) for food, the report estimated.
But unemployment is running at 70%, and an estimated two million street vendors lost their livelihoods in a highly criticised slum clearance campaign last year that also targeted informal traders.
The Zimbabwe Congress of Trade Unions, the main labour federation, said very few workers earn more than five million Zimbabwe dollars ($52) a month despite intermittent increases in recent months that also helped fuel inflation.
Consumer organisations estimate real inflation in excess of 1 000%, citing inflated black market prices for scarce food and gasoline that are not factored into the official rate.
The United Nations food agency distributed emergency supplies to three million
people in January and estimates five million will likely need help before the next harvests begin in April. Its experts noted many families survive on one meagre meal a day.
The value of the Zimbabwe currency has plummeted. In October, the Zimbabwe Reserve Bank abandoned a fixed exchange rate of Z$26 000 to the US dollar, allowing the rate to fall to 99 000-1. The central bank capped the rate at that level, pushing up black market currency exchanges to 160 000-1 this week.
By contrast, inflation in Zambia, once Zimbabwe’s poor neighbour, is running at 12%. Neighbouring South Africa recorded single digit inflation last year. – Sapa-AP