Money printing, deficit spending Zimbabwe’s inflation soars to 2,200 percent

HARARE, April 26, 2007 (AFP) – Zimbabwe, already battling to contain the world’s highest rate of inflation, announced on Thursday that the figure had soared once more to 2,200 percent. Before the devaluation, the Zimbabwean dollar had been trading at around 25,000 to the greenback, against the official rate of 250 dollars.

After the official announcement of the rate for March was twice postponed earlier this month, central bank governor Gideon Gono confirmed the figure had crashed through the 2,000 percent barrier for the first time after rising by another 470 percentage points from the 1,730 percent mark for February.

“Year-on-year inflation which stood at 1,072.2 percent in October rose to 11,281.1 percent in December and has risen to 2,200 percent by March,” Gono said in a televised statement.

“Inflation pressures are seen remaining high,” Gono said, calling for a collective effort to tame the “inflation dragon”.

“It’s imperative to note that the inflation dragon is as much determined by collective mindsets of all of us as it is by monetary aggregates or what is called money supply growth.

“As Zimbabweans, we must therefore think and act positively avoiding t