Inflation shoots up to a record 1,593%

By Lance Guma
12 February 2007

Zimbabwe’s annual inflation figure shot up to a record 1,593%, ensuring that the country maintains it’s record for the highest inflation in the world. This is despite government predictions that inflation will go down to about 400% by the end of the year. The Central Statistical Office acting Director, Moffat Nyoni, told journalists that non-food items like electricity, gas and other fuels had significantly contributed to the new figures.

Corruption and bad political decisions have run down the economy and subjected Zimbabweans to crippling foreign currency, food, fuel and power shortages. A controversial and often violent land grab campaign also destroyed the country’s once vibrant agricultural base, helping to create perennial food shortages.

Life is steadily becoming unbearable for most Zimbabweans as prices of basic goods go up, commuter fares increase almost fortnightly and the cost of renting homes becomes out of reach for most. The controversial Operation Murambatsvina exercise saw the destruction of thousands of homes and vending stalls and contributed to a housing shortage and high rentals. The result of this economic downturn has not only seen a serious brain drain but the relocation of many companies to neighbouring countries.

Doctors, nurses and teachers have been on strike while the largest union representing civil servants, the Public Service Association, has given government an ultimatum over what they consider poor salaries. What is set to infuriate Zimbabweans more are reports that Mugabe’s 21st February Movement, run by Zanu PF youth secretary Absalom Sikhosana, is on a drive to raise over US$1,2 million dollars for Mugabe’s birthday celebration.