Zimbabwe Inflation

Introduction

Zimbabwe inflation resulted the rise of general level of prices for goods and services in Zimbabwe. The IMF (International Monetary Fund) expressed on Tuesday, July 31st. 2007 that Zimbabwe's year-on-year inflation rate may reach out 100,000 percent by the end of the year 2007.

Statistical report

One statistical report from CSO(Central Statistical Office) reveals that the controversial price reduction resulted in closing of considerable number of shops and establishments.

In July, 2007, the year-on-year food and non-alcoholic beverages inflation reached at 8 624.1%(down by 170.9% point from the June figure of 8 795%) and the non-food inflation reached at 7 152.5%, which exemplifies the increase of 633.9% points from June figure of 6518.6%.

The housing, education and transport costs climbed up, while the unemployment rate went down.

Action plan

This is because of the plan of the Government of Zimbabwe to combat inflation, the shopkeepers cut down their prices to half.

Inflation rate( as on 24/08/2007): 7600%

Zimbabwe's inflation rate reaching 1,000% mark means that the government of Zimbabwe is struggling to keep its economic stability. According to IMF( International Monetary Fund), Zimbabwe is undergoing world's highest rate of inflation.