Zimbabwe’s annual inflation rate soared to 11,2-million percent in June, state media reported on Tuesday, quoting figures from the central statistical agency.
”Zimbabwe’s annual rate of inflation surged in June to 11,2-million percent,” the Herald reported.
”It gained 9 035 045,5 percentage points from the May rate of 2 233 713,4 percent.”
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,” the Herald quoted Reserve Bank Governor Gideon Gono as saying then.
”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 banknotes after knocking off 10 zeros from its currency.
Talks
Meanwhile, South African President Thabo Mbeki’s failure to secure a Zimbabwean power-sharing deal at a regional summit on the weekend has dealt another blow to his credibility as his influence wanes at home.
Mediation in the Zimbabwe talks could be Mbeki’s last chance to improve his image before he has to step down next year after serving two terms.
But the Southern African Development Community (SADC) was unable to get President Robert Mugabe and opposition leader Morgan Tsvangirai to agree to share power at the meeting, at which Mbeki took over as the 15-nation bloc’s chairperson.
Mbeki, accused by critics of being too soft on Mugabe, was left to repeat his longstanding line that no solution can be imposed from outside.
”He could have scored a nice coup if he had pulled off a power-sharing agreement,” said Mark Schroeder, director of risk analysis for sub-Saharan Africa at Stratfor. ”Mbeki will revert to his lame-duck status.”
At home, Mbeki has presided over an economic boom but crime and poverty are still rife. A major crisis over lack of power generation has raised fears about the possible impact on the broader economy.
Growth is slowing and unions say Mbeki’s government has favoured business at the expense of workers and the poor.
South Africa has one of the world’s highest rates of HIV, with an estimated 500 000 people infected each year, and Aids campaigners for years questioned Mbeki’s policies for addressing the pandemic. — AFP, Reuters