Zimbabwe Announce Fall In Inflation Figures

Zimbabwe’s official rate of inflation appears to have slowed over the course of the last month according to government figures released today.

In figures released by the Central Statistical Office, the prime rate of inflation on an annual basis had fallen over the course of August to 6,592.8%, from last month’s official 7,634.8%.

Whilst the official figures may reflect a country in desperate economic crisis, many insiders within Zimbabwe have suggested that the actual rate of inflation could be as much as twice that quoted by the official government reports.

Despite the fall in inflation over the period, the prime rate still remains, by some margin, the highest in the world, reflecting a much deeper economic crisis in the troubled south African nation.

The Zimbabwe government has adopted a radical anti-inflation measure over the last month, effectively enforcing price freezes to halt inflation. Businessmen and public service prices were ordered to freeze at current rates, with imprisonment for those in contravention to the decree.

However many have criticised the unorthodox policy decreed as law by leader President Mugabe as adding further weight to the shortage of basic food supplies within the economy, which has seen hundreds of thousands flee to neighbouring nations over the last few months.

Wages and prices across Zimbabwe were frozen indefinitely last month, with those trying to raise prices charged as criminals, facing up to six months imprisonment as a consequence.

With prices rising a such a sharp rate, many small business owners have found it impossible to afford basic raw materials in light of the price freeze, leading to widespread shortages in basic foodstuffs and other essentials.

Whilst the measures appear to have had some impact in the short term, it remains difficult to foresee any way forward for the struggling southern African economy.

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