Zimbabwe's inflation rises to 1 098 percent

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By Staff Reporter

ZIMBABWE'S annual inflation quickened to 1 098.8% in November from 1 070.2% previously, highlighting an eight-year economic recession critics blame on government incompetence.

The country's inflation rate is the highest in the world and is the clearest sign of an economic and political crisis also shown in unemployment above 80%, shrinking gross domestic product and shortages of foreign currency, food and fuel.

The Central Statistical Office also said on Monday month-on-month inflation rose to 30.1% compared with 27.5% previously.

President Robert Mugabe's government has projected that inflation - which it has labelled the country's number one enemy - would slow to between 350% and 400% by the end of next year although analysts are wary of the forecast.

Analysts say only drastic measures such as curbing excessive state spending and halting the practice of handing cheap funds to farmers and state enterprises - which has been blamed for driving money supply growth - would help bring inflation down.

Zimbabwean workers have borne the brunt of inflation as they grapple with escalating increases in the price of basic commodities, transport fares, education and medical fees while salaries have legged behind.

The government has accused businesses of profiteering at the expense of ordinary citizens and is working on a law that will effectively require manufacturers to justify raising prices.

Last week it set maximum fees for private schools.

Critics blame Mugabe's politics for plunging the former bread basket of southern Africa into crisis, particularly his government's drive to seize land from white commercial farmers for landless blacks.

But Mugabe says Zimbabwe has fallen victim to a Western campaign of sabotage to punish him for the land seizures.

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