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Zimbabwe's inflation rate hits 1,000 per cent

Andrew Meldrum

Pretoria: Zimbabwe's annual inflation rate soared above 1,000 per cent on Friday, highlighting the country's economic and political crisis. Fearing an angry reaction, President Robert Mugabe's Government had delayed release of the statistic for two days.

``We already knew inflation was above 1,000 per cent even before the news. We feel it every day,'' said a Harare factory worker, Iddah Mandaza. ``If you see the price of something in the morning, it is higher in the afternoon. It's hurting everyone.''

The rate, of 1,043 per cent, is the world's highest, and Zimbabwe also has the fastest contracting economy outside a war zone. It has shrunk by more than 40 per cent since 2000. Harare economists say inflation could reach 1,800 per cent by the end of the year.

Zimbabwe's economic decline was spurred on by the collapse of the country's agriculture following Mr. Mugabe's seizure of most of the white-owned commercial farms, starting in 2000. Now the President is threatening to take 51 per cent control of all mines, which economists say will provoke further economic chaos. Zimbabweans are plagued by shortages of staple foods and fuel, one of the world's highest HIV infection rates, and the collapse of the public healthcare system. The country has the world's lowest life expectancy for women, at 34 years, according to United Nations figures.

Standard of living

The inflation and drastically declining standard of living are fuelling resentment against the Government, particularly in the cities, according to political analysts. A year ago the Government tore down the homes of an estimated 700,000 poor residents of Harare and other urban centres. The state-controlled Herald newspaper later reported that Mr. Mugabe ordered the slum clearance because he feared the city-dwellers would revolt.

The U.N. Secretary-General, Kofi Annan, is putting together a plan to resolve Zimbabwe's crisis by getting Mr. Mugabe to retire in return for an economic recovery package, according to the Zimbabwe Independent newspaper. Sceptics in Harare say that the South African President, Thabo Mbeki, has already pressed Mr. Mugabe to accept reforms, without success. —

© Guardian Newspapers Limited 2006

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