Zimbabwe's inflation to peak at 800%

Zimbabwe's inflation to peak at 800% - governor

• Zim inflation shoots to 585 percent

• 2005 an 'agonising' year for Zimbabweans

• Murerwa unveils tax cuts, predicts growth

• Humble bicycle drives up Zimbabwe inflation

• Zim dollar plunges 66% on interbank market

• Zimbabwe to have new currency next year

• Gono unveils new economic reforms

• Gono says Zim in 'darkest hour before dawn'

• Zimbabwe's inflation shoots to 360 percent

• Zimbabwe: living in a lunatic asylum

• Zimbabwe dollar falls to all time low

• Zimbabwe crisis to worsen - analysts

• Inflation shoots up, again

• Murerwa wants end to price controls

• Zim inflation surges by 90 percent

• Murerwa slashes ministerial budgets

• Top businessman Naran dies

• SA approves US$1bn credit line for Zim

• RBZ devalues Zim dollar by 40 percent

• Zimbabwe faces economic meltdown

• Gono's economic plan crumbles as inflation shoots up

• Patrick Mlambo: A 100 reasons why Gono should resign

• Gono wants white farmers back

• Central back chief admits failure

• Gono revises inflation target 100 percent upwards

• Gono's 'sleepless nights' over inflation

• Gono fighting a losing battle

• Gono, the Zimbabwean Napoleon

• Patrick Mlambo: The small minds in charge of our economy

• Chido Makunike: Overcoming the 'Messiah Complex'

• Zimbabwe dollar depreciates by 4 percent

• Inflation accelerates once again

• Gono predicts inflation to fall to 20%

• Zim fools no-one with 9% unemployment claim

• Zim claims on lowered inflation unconvincing

• House prices bite Zimbabwe's poor

• RBZ cautions against paying political prisoners

• $200bln windfall for ex-political prisoners

• Zimbabwe's inflation seen dipping to 160%

By Business Reporter

ZIMBABWE'S annual rate of inflation is expected to reach a peak of between 700 and 800 percent in the first quarter of the year before it starts to rescind, the Reserve Bank of Zimbabwe has said.

Presenting the 2005 fourth quarter monetary policy statement on Tuesday, the Reserve Bank of Zimbabwe Governor, Gideon Gono, said inflation was expected to reach levels of below 500 percent by June and forecast to end the year between 220 and 230 percent.

The central bank now expects to reach two digit inflation levels next year and not this year as earlier predicted, he added.

Inflation stands at 585.8 percent as at December last year. Gono called for a comprehensive and holistic framework to burst the inflation bubble.

Among targeted areas to win the anti-inflation battle were reducing money supply growth, strict adherence to the budget by government, full utilization of productive land distributed under the land reform program and tightening of interest rates.

"In order to burst the inflation bubble that is threatening to reverse the gains made over the past 24 months, there is need for a comprehensive, holistic framework that significantly reduces money supply, align fiscal expenditures to budgeted levels, as well enhancing productivity across all sector so the economy," he said.

With the food component contributing about 32 percent of the inflation basket, it was critical for the nation to produce adequate food through utilization of land and water resources for irrigation.

Last year's drought forced the nation to rely on imports from neighboring countries such as South Africa. Inflation reached an all time high of 622.8 percent in January 2004, declining to 124 percent in March last year before the trend started to reverse.

Among the major inflation drivers were high money supply growth,drought, decline in foreign currency earnings, the surge in international oil prices, introduction of new taxes late last year and continued adjustment of commodity prices - Xinhuanet
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
newsdesk@newzimbabwe.com