Friday, October 10, 2008

Zimbabwe inflation hits new high


Zimbabwe's annual inflation rate - already the world's highest - has soared to 231,000,000%, newly released official figures for July show.

The rise - from 11,200,000% last month - was largely due to increases in the prices of bread and cereals.

A landmark power-sharing deal between President Robert Mugabe and opposition leader Morgan Tsvangirai has failed to ease the country's economic crisis.

Meanwhile, the UN says it needs $140m for food aid over the next six months.

The UN World Food Programme estimates that two million people are in need of food aid, and that the figure will rise to 5.1 million - or 45% of the population - by early 2009.

"Millions of Zimbabweans have already run out of food or are surviving on just one meal a day - and the crisis is going to get much worse in the coming months," said WFP official Mustapha Darboe.

The inflation figures are from July - before the power-sharing deal - but reports from Zimbabwe suggest that the prices of many goods has continued to shoot up, while the value of the Zimbabwe dollar is plummeting

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