afrol News, 19 August - Rate of inflation in Zimbabwe has sky-rocked to over 11 million percent in past three months, hitting records as the highest in the world, according to the country's Central Statistical Office.

Official figures dated yesterday indicate that inflation has surged from the rate of 2.2 million percent recorded in May, despite government's price controls.

Zimbabwe's finance minister, Samuel Mumbengegwi, is said to have confirmed current state of affairs, but added that soaring inflation rate was not confined to the southern African state alone.

"While our case has been aggravated by illegal sanctions imposed by Western powers, rising food prices are a world phenomenon because of the use of bio-fuel. But we will continue to fight inflation by making sure that prices charged are realistic," Mr Mumbengegwi was quoted as saying.

Analysts have said Zimbabwean government's official inflation rate figures are conservative. Last week, one of Zimbabwe's leading banks, Kingdom Bank, reportedly said country's inflation rate was now more than 20 million percent.

The locally-owned bank is said to have predicted tougher times ahead for the country in absence of donor aid as well as foreign investment, in an economy that has been in freefall for almost a decade.

Zimbabwe, once one of the richest countries in Africa, has deteriorated into economic chaos mainly blamed on president Robert Mugabe's policies.

For his part, Mr Mugage has denied responsibility on country's economic ruin and has instead blamed international sanctions, which he says have been imposed against Zimbabwe.

Analysts say crisis has worsened following Mr Mugabe's disputed re-election in 27 June presidential run-off.

Main opposition Movement for Democratic Change (MDC), Morgan Tsvangirai boycotted polls, claiming widespread violence and intimidation on his followers.

The economic crisis has destroyed Zimbabwe's currency and made it difficult for Zimbabweans to buy basic commodities, electricity, fuel, and medicines.

Many Zimbabweans have left the country, amid rising unemployment and deepening poverty.

Last week a summit in South Africa of regional African leaders failed to persuade Zimbabwe's political parties to agree to form a government of national unity, which observers view as the best way to end Zimbabwe's record recession.

By staff writer

© afrol News

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