Zimbabwe inflation knocks on 800%

Zimbabwe inflation knocks on 800%

• Consumers hit by bread price hike

• Zim inflation nears record high

• Zimbabwe's unwilling millionaires

• Zim introduces $50 000 bill

• Zimbabwe army chief fears mass unrest

• Gono: Zimbabwe 's inflation to peak at 800%

• 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 Staff Reporter

ZIMBABWE'S annual inflation rate vaulted to a record high in February, driven by a surge in rental, transport and education fees, blighting prospects of a quick recovery for country's battered economy.

The consumer price index rose by 782% year-on-year in February from 613.2% in January, the Central Statistical Office (CSO) said on Friday.

The previous all-time high for the consumer price index (CPI) was 622.8% hit in January 2004.

On a monthly basis, the CPI rose 27.5% from 18.6% in January.

"Rent, transport, college and tertiary fees contributed the highest to the annual inflation figure," the CSO said in a statement accompanying the release.

Zimbabwe's inflation is the highest in the world, according to the International Monetary Fund.

"There are no prospects for recovery because of central bank quasi-fiscal spending which is fuelling money supply growth at a time when industry is shutting down. There is too much money chasing too few goods," said one analyst.

He was referring to the practice of the Reserve Bank of Zimbabwe of issuing bills to mop up excess liquidity.

Analysts said the policy is fuelling money supply growth as the bills were being issued at astronomical rates for only 91 days, meaning after that period more money is injected into the market.

An acute shortage of foreign currency has resulted in scarce fuel supplies, which have pushed up transport costs.

House rentals have surged following the government's controversial clean-up operation last year, which destroyed homes and left hundreds of thousands of Zimbabweans without shelter.

The IMF executive board this week decided not to restore Zimbabwe's voting and related rights and said it would not release more funds to the country as Harare officials had hoped after clearing part of its debt last month.

The board, which met on Wednesday said Zimbabwe's economic crisis required urgent implementation of a "comprehensive policy package comprising several mutually reinforcing actions in the area of macroeconomic stabilisation and structural reforms" and urged the country to clear outstanding arrears.

Once a regional breadbasket, Zimbabwe has grappled with rampant inflation during six years of recession, fanning shortages of foreign exchange, fuel and food, all widely blamed on mismanagement by President Robert Mugabe's government - Reuters
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