In January, the inflation rate in Zimbabwe was estimated to be 150,000% even though the official rate was much lower. Now the official inflation rate is 2,200,000%. That’s quite a rate!
As such, the Zimbabwean central bank has had a tough time keeping up. They’ve just now released a new $100,000,000,000 (that’s 100 billion) bill. The new notes trade for approximately $1 US.
Fortunately, for Zimbabwe, they were able to “democratically” re-elect their fearless and entirely benevolent leader.
Our favorite African leader, “Wonderful Bobby” Mugabe appears to still be the proud owner of the world’s highest inflation rate. And he seems pretty dedicated to keeping it that way.
Reserve Bank Governor Gideon Gono said in a statement 10 million Zimbabwe dollars notes will be issued tomorrow along with 1 million and 5 million Zimbabwe dollars bills.
The highest existing note, introduced last month, is for 750,000 Zimbabwe dollars.
The new 10 million note is the equivalent of about £2 at the dominant black market exchange rate. A hamburger at an ordinary cafe costs about 15 million Zimbabwe dollars (£3).
That hamburger has trebled in price this month amid shortages of bread, meat and most basic goods.
Zimbabwe faces the world’s highest official inflation of an estimated 25,000 per cent. Independent financial institutions say real inflation is closer to 150,000 per cent.
When I last posted in early September, the inflation rate was only about 7600%.
Good job, Bobby.
Last May I noted that Zimbabwe had run its inflation rate up to over 3700% and at the same time earned a position at the head of UN Commission on Sustainable Development. Now, less than 5 months later, things have become a bit worse.
The new [wage] freeze, announced in Friday’s editions of government-controlled newspapers, is intended to combat an annual inflation rate that the government says exceeds 7,600 percent, and private economists say is twice that.
The answer, sadly, is that Zimbabwe, a global example of how to ruin a productive economy, has just been chosen to head the Commission.
If the motto of the UN isn’t “of the leaders, by the leaders, and for the leaders,” it ought to be.
Alex Tabarrok has more in the lousy situation in Zimbabwe. My old posts are available here.
When we last visited the African nation of Zimbabwe, inflation was a mere 1600%. Little did we know, “Wonderful Bobby” Mugabe was just getting started. In April he printed enough money to kick it up a notch to 2200%. But he’s still not done. Recently released figures suggest that things have worsened. Zimbabwe’s inflation rate is now over 3700%!
Good job, Bobby!
