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Last Updated: Friday, 15 September 2006, 12:03 GMT 13:03 UK
Zimbabwe's inflation tops 1,200%
Bread price protest in early 2006
Zimbabweans are growing frustrated at the state of the economy
Zimbabwe's annual inflation rate continues its upward surge, reaching a record high of 1,204.6% in August, and adding greater strain to the economy.

The latest rise, which represents a month-on-month climb of 211%, came after slight falls in June and July.

The south African country's inflation has been in chaos since December 2004 when it soared to 622.8%.

Zimbabwe has been dogged by shortages of foreign currency to pay for fuel and food. Unemployment has reached 70%.

Goods cost more than 13 times what they did a year ago, compounding the hardship many Zimbabweans experience.

Analysts have predicted that inflation could hit 1,800% by the end of the year.

President Robert Mugabe denies claims that government policies, including land reforms, have contributed to the problems - instead blaming domestic and foreign enemies for the country's difficulties.

But many analysts have said the ruling party has played a key role in precipitating the crisis.

They argue the government aggravated the situation when it took control of land owned by white farmers, which triggered a sharp drop in production and exports of agricultural goods.

According the United Nations' agencies, more than four million of the country's 13 million people face food shortages.




SEE ALSO
Zimbabwe's inflation steams ahead
09 Jun 06 |  Business
Zimbabwe's inflation tops 1,000%
12 May 06 |  Business
Zimbabwe inflation data delayed
10 May 06 |  Business
Country profile: Zimbabwe
13 Jan 06 |  Country profiles

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