Terrible Inflation In Zimbabwe

The dollar is the currency of Zimbabwe. It is subdivided into 100 cents. It is usually abbreviated with the dollar sign $, or alternatively Z$ to distinguish it from other dollar-denominated currencies. Rampant inflation and the collapse of the economy have severely devalued the currency, with many organizations using the US dollar, the euro, the pound sterling, or the South African rand instead. Early in the 21st century, Zimbabwe started to experience hyperinflation. Inflation reached 624% in early 2004, and then fell back to low triple digits before surging to 1,281.1% in December 2006. Inflation reached another record high of 3714% (year-on-year) in April 2007. The monthly rate for April 2007 exceeded 100%, implying that inflation may soon exceed all forecasts, as 100% monthly inflation over sustained 12 months would produce annual inflation of over 400,000%. Mid year inflation for 2007 has been breaching records as inflation for May 2007 was estimated at 4,530% (year-on-year).

On 21 June 2007, the U.S. ambassador to Zimbabwe, Christopher Dell, told the Guardian newspaper that inflation could reach 1.5 million per cent by the end of the year. The current unofficial inflation rate is above 11,000%, and the black-market exchange rate is Z$400,000 to the pound. On 13 July 2007, the Zimbabwean government said it had for the moment stopped publishing (official) inflation figures, a move that observers said was meant to draw notice away from runaway inflation which has come to represent the country’s unprecedented economic meltdown.

On 27 July 2007, the Consumer Council of Zimbabwe (CCZ) said its recent calculations for the monthly expenses for an urban family of six showed that inflation for the month of June was more than 13,000%. The Central Statistical Office (CSO), the official source of Consumer Price Index numbers, had not released its figures since February (2007) when it reported annual inflation at 1,729%. In September 2007, the Central Statistical Office announced an official inflation rate of 6,592.8% for August 2007. Private estimates are as high as 20,000%. In October 2007, they announced an official inflation rate of 7,892.1% for September 2007. In November 2007, they announced an official inflation rate of 14,840.5% for October 2007.

On 27 November 2007, the chief statistician of the Central Statistical Office, Moffat Nyoni, announced that it would be impossible to calculate the inflation rate of the dollar any further. This was due to the lack of accessibility of basic goods, and subsequent lack of information from which to calculate the inflation rate. The International Monetary Fund has stated that inflation is predicted to rise to 100,000% per annum. On 14 February 2008, the Central Statistical Office announced that the inflation rate for December 2007 was 66,212.3%, and the unofficial exchange rate was Z$7.1 million to the US$1.

On 20 February 2008, the Central Statistical Office said that formally, inflation has in January 2008 gone past the 100,000% mark to 100,580.2%. On 4 April 2008, the Financial Gazette reported that officially, inflation in February 2008 jumped to 164,900.3%. On 15 May 2008, the Zimbabwe Independent reported that officially, inflation in March 2008 jumped to 355,000%. On 21 May 2008, SW Radio Africa reported that, according to independent financial assessment inflation in May 2008 jumped to 1,063,572.6%. The state statistical service has said there are not sufficient goods in the shortage-stricken shops to calculate any new (official) figures.