Astronomical inflation in Zimbabwe
Share Now on:
Astronomical inflation in Zimbabwe
TEXT OF STORY
Scott Jagow: If you think we have problems here, try buying a soda in Zimbabwe. You’ll need a suitcase full of money, and I’m not exaggerating. Gretchen Wilson has the latest inflation numbers from Zimbabwe.
Gretchen Wilson: In the first official figures in three months, Zimbabwe’s Central Statistical Office says inflation has more than doubled since May.
We’re not talking a few percentage points here. Authorities say the annual inflation jumped to 7,635 percent in July. But economists say the true inflation rate is actually far higher — at least in the five-figures.
This means cash earned a year ago and saved under a mattress is beyond worthless. Stacks of bills are needed for the most basic transaction.
A bottle of Coke, which is hard enough to find on the shelves of Harare, today costs $65,000.
The International Monetary Fund warns annual inflation could reach 100,000 percent by the end of the year.
Last month, the country launched a new 200,000 Zimbabwe dollar bill. It’s value on the street? One U.S. dollar.
In Johannesburg, I’m Gretchen Wilson for Marketplace.
Stories You Might Like
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?
