Wednesday, May 21, 2008

Inflationary nightmare

Zimbabwe inflation estimated at more than 1,000,000%

Independent finance houses have said in an assessment that annual inflation rose this month to 1,063,572% based on prices of a basket of basic foodstuffs. As stores opened for business on Wednesday, a small pack of locally produced coffee beans cost just short of Z$1-billion. A decade ago, that sum would have bought 60 new cars.

This is an example of the economic havoc that runaway inflation can inflict.

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