Zimbabwe's Hyperinflation Mark Hits 11 Million Percent In June

August 19, 2008 12:59 p.m. EST

Harare, Zimbabwe (AHN) - Once again, Zimbabwe broke world records Tuesday, not in the sporting arena but in having the world's highest inflation rate at 11.2 million percent in June.

Zimbabwe Finance Minister Samuel Mumbengegwi attributed the country's hyperinflation rate to soaring food prices and western sanctions on their ruling elite.

"While our case has been aggravated by the illegal sanctions imposed by the Western powers, rising food prices are a world phenomenon because of the use of biofuel," the minister said.

Mumbengegwi vowed the government will continue to battle hyperinflation by ensuring realistic price tags on commodities.

Zimbabwe's latest inflation rate is a surge from May's official figure of 2.2 million percent inflation, considered by many analysts on the low side. Even the 11.2 million percent June rate is deemed conservative as the Kingdom Bank, one of the country's leading financial institution, placed it at 20 million percent.

An unidentified local economist from a Zimbabwean bank, quoted by BBC, commented, "Our inflation figures are way above that, but what it tells us is that the productive base of the economy has really shrunk... We really need to change the way we do business."