Johannesburg — ZIMBABWE's annual inflation rate surged to more than 7900% last month as emergency measures by President Robert Mugabe failed to slow the country's economic crisis.

The government's Central Statistical Office (CSO) yesterday said annualised inflation rose to 7982,1% last month from 6592,8% in August, the world's highest rate. Experts estimate that it is actually much worse.

Month-on-month inflation climbed 38,7% last month, the CSO said.

"Year-on-year food and non-alcoholic beverages inflation stood at 7759%, 149,1 percentage points down from the August 2007 figure of 7908,1%. Non food inflation was 8096,7% from the August figure of 5983,9%," it said.

The economy's decline started when the value of its currency plunged nearly 50% in reaction to unbudgeted expenditures to pay disgruntled former combatants. In the past decade, the decline, worsened by the state's land grab, has spawned widespread poverty, capital flight, mass emigration and a political crisis. The country has little foreign currency and lacks fuel, electricity, food and essential basic goods.