Saturday, January 13, 2007

Zimbabwe in Economic Crisis

Source: Zimbabwean inflation hits 1,281% -

Zimbabwe is facing its worst economic crisis since the 1980’s. Inflation in the country continues to move upward at an alarming rate. In December inflation rates reached 1,281.1%. The cause of the continuing rise is said to be the higher costs of domestic energy, gas and other fuels.

This rise in inflation has led to a significant increase in the cost of living, which rose by 43% in the past month. School fees alone rose by 262% and the price of bread rose by 180%.

Some fear that this increase in the cost of living will lead to widespread protests and strikes. The country has already experienced a standstill in its public health system as health care professions are striking due to a refusal to meet their demands for large increases in pay.


What steps should Zimbabwe's government take to stop the rising inflation rates?

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