Zimbabwe inflation at 2
200
000%

New bank notes have been issued to cope with soaring prices
Zimbabwe's annual rate of inflation has surged to 2
200
000%
official figures have shown.
The figure is the first official assessment of prices in the troubled African nation since February

when the rate of inflation stood at 165

000%.
Zimbabwe

once one of the richest countries in Africa

has descended into economic chaos largely blamed on the policies of President Robert Mugabe.
Mr Mugabe was re-elected last month in a controversial one-man race.
The opposition party

the Movement for Democratic Change (MDC)

pulled out of the run-off election

saying its supporters were being attacked and killed.

This situation is not sustainable. There's going to be some sort of implosion
Rejoice Ngwenya

economist
Rising costs are forcing retailers to increase prices a number of times a day for goods purchased with billion dollar bank notes and the number of people falling into poverty is on the rise.
In May

the central bank issued a 500m Zimbabwe dollar banknote

worth US$2 at the time of issue

to try to ease cash shortages amid the world's highest rate of inflation.
This is in stark contrast with the situation at independence in 1980 when one Zimbabwe dollar was worth more than US$1. Mr Mugabe denies that he is ruining the economy

laying the blame on international sanctions he says have been imposed against Zimbabwe. The US and the EU have imposed targeted sanctions

such as a travel ban and an assets freeze

on Mr Mugabe and his close allies.