Political Leaders Fiddle As Inflation Soars Out Of Control

WHILE the country’s three political parties continue to haggle over cabinet posts, inflation has risen to 231 million %.


The failure by the country’s three parties who have been accusing each other of jeopardising the process to agree on cabinet posts and coming up with a long term economic plan has resulted in increased speculation and increase of prices of goods and services.
An outline agreement signed on September 15 has stalled over key cabinet posts, while Zimbabweans endure the world’s fastest price rises, shortages of food, foreign currency and crumbling infrastructure.
How bad is inflation in Zimbabwe? The price of bread, like everything else, soars almost daily.
For untold numbers of Zimbabweans, bread, milk and meat have become unimaginable luxuries. In fact, to be seen with these basics one would be associated with the country’s elite. Such is the desperation of the situation!  
All are casualties of the hyperinflation that has roared to 231 million % in July from 11,2 million %, a 219,8 million percentage point increase
According to figures from the Central Statistical Office released on Wednesday, month on month inflation rose by 2 600,2% compared to 839,3% in June, largely driven by high prices of bread and cereals.
What it means is on average goods in July this year were about 231 million times as expensive as they were 12 months earlier.
“If you need something and have cash, you buy it. If you have cash you spend it today, because tomorrow it will have lost its value by almost half. Normal horizons do not exist here. People are living hand to mouth,” said economic consultant John Robertson.
The month-on-month rate rose 1 760,9-percentage points on the June rate of 839,3% to 2 600,2%. Bread and cereals were the main drivers.
Meanwhile while global markets remain in turmoil, the bullish local bourse continued to surge to greater heights with benchmark industrial index breaching the one billion point-mark on Wednesday.
The industrials, which opened the week firm, maintained the up trend adding 22,32% to close at 1 185 979 384,90 points. The minings followed suit increasing 24,86% to settle at 1 494 804 835, 35 points.

 

By Paul Nyakazeya 

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