Zimbabwe annual inflation rate soars to 11.2 million percent
Posted: 19 August 2008 1641 hrs

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HARARE: Zimbabwe's annual inflation rate soared to 11.2 million percent in June, state media reported on Tuesday quoting figures from the central statistical agency.

"Zimbabwe's annual rate of inflation surged in June to 11.2 million percent," The Herald reported.

"It gained 9,035,045.5 percentage points from the May rate of 2,233,713.4 percent."

Once a regional economic model, Zimbabwe is in the throes of economic crisis with an astronomical inflation rate and at least 80 percent of the population living below the poverty threshold, often skipping meals and walking long distances to stretch their income.

Earlier this month Zimbabwe's central bank chief urged a six-month price and salary freeze in a bid to rein in runaway inflation, with the country in the midst of an economic meltdown.

"Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," The Herald quoted Reserve Bank governor Gideon Gono as saying then.

"As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," said Gono.

His proposal came as the bank unveiled on August 1 a new series of bank notes after knocking off 10 zeros from its currency. –AFP/yt