Zimbabwe's annual inflation rate soared to 11.2 million percent in June 2008, according to state media. "It gained 9,035,045.5 percentage points from the May rate of 2,233,713.4 percent," The Herald reported. Once a regional economic model, Zimbabwe is in the throes of economic crisis with an astronomical inflation rate and at least 80% of the population living below the poverty threshold, often skipping meals and walking long distances to stretch their income. The central bank unveiled on 1 Aug 2008 a new series of bank notes after knocking off 10 zeros from its currency.
- So, despite dropping 10 zeroes from their currency, the Zimbabwe hyperinflation situation continues, as everyone has pretty much expected. Without improvements in the underlying economy, the zero-dropping exercise has proven to be a futile effort. International observers will now be looking out for the Zimbabwe central bank to be adding the zeroes back all over again.