Zimbabwe's Inflation Rate Hits 231 Million Percent In July

Harare, Zimbabwe (AHN) - While billions of dollars are being talked about as U.S. and European banks collapse under the pressure of the global credit crunch, Zimbabwe is also dealing with stratospheric numbers few calculator screens could accommodate in full.

The African nation's inflation rate again broke another world record as it hit 231 million percent in July, surpassing another global record made by Zimbabwe in June at 11.2 million percent.

The non-stop rise of inflation figures was attributed to the soaring price of bread and cereals. Even if a power-sharing agreement was reached by President Robert Mugabe and opposition leader Morgan Tsvangirai and the central bank issued new currency, Zimbabwe's inflation rate continues to climb up non-stop.

Millions of Zimbabweans survive on just one meal a day or go hungry. The UN World Food Program said about two million Zimbabweans need food assistance badly. By early next year, it estimates the figure will rise to 5.1 million, roughly 45 percent of the country's population.

According to Jeffrey Sachs, economics professor at Columbia University, Zimbabwe's hyperinflation is among the top five worst inflations of all time. Sharing the dubious distinction of belonging to the same league as Zimbabwe are Germany in the 1920s, Greece and Hungary in the 1940s and Yugoslavia in 1993.