Zimbabwe inflation rate hits 11.2 million percent

By DPA,

Harare : Zimbabwe’s inflation rate reached a new high of 11.2 million percent in June, state media reported, quoting figures from the central statistics office.

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The new rate compares with an official figure of 2.2 million percent for May, a figure that had been deemed unrealistically low.

Faced with critical cash shortages, Zimbabwe’s Reserve Bank at the end of July slashed 10 zeroes from the Zimbabwe dollar. One US dollar was fetching up to 800 billion Zimbabwean dollars at the time.

The dire straits of the economy, widely blamed on President Robert Mugabe’s populist policies, have prompted the elderly leader to enter talks with donor-backed opposition leader Morgan Tsvangirai on sharing power.