*So it's a good toilet paper. http://news.yahoo.com/s/afp/20060915/bs_afp/zimbabweinflation HARARE (AFP) - Zimbabwe's annual inflation rate has reached a new record high of more than 1,200 percent in August despite the conversion to a new currency designed to halt the upwards spiral. "The year-on-year rate of inflation in August 2006 was 1,204.6 percent gaining 211 percentage points on the July rate of 993.6 percent," Moffat Nyoni -- the acting director of the central statistics office -- told a news conference on Friday. "This means a bundle of goods that cost 100 Zimbabwe dollars (40 US cents) in August 2005 would on average cost 1,304.60 in August 2006." The highest increase was in the cost of emergency medical services which went up 23,622.9 percent from the August 2005 rates while the average cost of transport went up by 6,015.3 percent, he added. The announcement of the new rise came after slight falls in the rate for June and July, which had raised hopes by central bank chief Gideon Gono that a corner had been turned in the fight against the "inflation dragon". The previous high of 1,193 percent was recorded in May. The southern African country's annual inflation rate has been on a rollercoaster ride since December 2004 when it shot up to 622.8 percent. The central bank slashed three zeroes from its currency on July 31 and introduced a new series of bank notes in a move aimed at reining in runaway inflation often referred to as "our enemy number one" in government circles. Gono said the currency switch was also meant to snuff out a burgeoning foreign currency parallel market, where rates were up three times higher than the prevailing bank rates. Despite the currency switch, life remained tough for the majority of the people, who often resort to skipping meals and walking or cycling long distances to work in order to stretch their salaries to the next payday. The consumer watchdog Consumer Council of Zimbabwe announced last week that the food basket for an average urban family of five cost 96,000 Zimbabwe dollars while the average worker earns 20,000 dollars. Nyoni said the latest increase could be largely attributed to a rise in the cost of fuel, which had gone up by about 200 percent in the last month. "The escalation of the price of fuel has pushed up the costs of goods and services in the past month," he said. Economist Daniel Ndlela said the inflation rate would continue to climb until the government addressed fundamental weaknesses. "As long as the central bank keeps printing money, as long as the exchange rate remains misaligned and as long as we remain in this situation where there is no production, inflation will go haywire," he told AFP. "Our money is chasing few goods and the misaligned exchange rate is fuelling the parallel market and that is what is driving the inflation rate up." Zimbabwe's economy has been on a downturn for the past seven years, dogged by runaway inflation and massive unemployment. At least 80 percent of the population lives below the poverty threshold. Critics blame the recession on the country's controversial land reforms which saw the government seize farms from white commercial farmers for redistribution to landless blacks.
that's always the problem with poor countries... they never see the fact that foreigners who invest in their country actually benefit the economy... down with positive discrimination... stupid people...
They're not stupid. Uniformed maybe. Imagine it yourself, you're poor and everyone else you know is poor. Except the white guy that pays you next to nothing in salary because if you dont want the pay - he'll just hire someone else. If then the president comes along and tells you it's ok to beat him up and take his land because he stole it - what would you do? The people in zimbawe are not stupid, they're misinformed and lead by a maniac that would be in the loony-house in any western civilization.