11.2 million % inflation! How is Zimbabwe surviving?

Zimbabwe's inflation rate has just touched a stratospheric level of 11.2 million per cent! Yes, 11.2 million per cent, the highest in the world's history!

Compare that to the rate of inflation in India -- which is hovering at the 12 per cent level and causing so much turmoil for Indians as the cost of commodities rises sharply -- and perhaps you can put things in proper perspective.

And while the world and its brother-in-law shed tears as the United States slips into a recession and major stock markets across the world plummet, spare a thought for Zimbabwe where money has no value, and hunger, poverty and death are constant companions. So why is Zimbabwe facing such times? Why Zimbabwe is in this situation?

Zimbabwe is in the throes of an unparalleled economic crisis because of over a decade of economic recession, extreme food and fuel shortage, an unemployment rate of over 80 per cent, and lack of political will to do anything about it.

The other reasons also are the government's ban on relief efforts by foreign NGOs, a debilitating drought, and the scourge of the AIDS epidemic.

There are more reasons for Zimbabwe's terrifying condition. . .

So how are Zimbabweans surviving?

Barely.

You can just about buy a loaf of bread for Z$1,000. And if you want a few bananas, you need to pay a bagful of cash.

The economy faces collapse with consumers resorting to barter as inflation and a slump in the Zimbabwe dollar erodes the value of cash.

Cash-strapped people are resorting to bartering fuel coupons for goods, such as household appliances and furniture. Some retailers prefer payment in coupons instead of local currency because of the rapid devaluation of the Zimbabwe dollar, report Zimbabwean newspapers.