President Robert Mugabe's government has branded Zimbabwe's roaring inflation - now the highest in the world - its chief enemy as the African nation grapples with an economic recession also shown in rising unemployment and deepening poverty levels.

The Central Statistical Office (CSO) said yesterday annual inflation rose to 1 098,8 perent in November from 1 070,2 per cent the previous month, grim news for officials wary over rising tensions caused by the country's worst economic crisis since independence from Britain in 1980.

Inflation peaked at 1 204,6 per cent in August this year.

"On a year on year basis the highest increases in prices was recorded in medical services, domestic power, electricity and fuel," Kenneth Shonhiwa, acting CSO director, told journalists.

On a month-on-month basis, prices rose by 30,1 per cent compared with 27,5 per cent previously.

The government has projected inflation will slow to between 350-400 per cent by the end of next year although analysts are wary of the forecast.

Economists say only drastic measures such as curbing excessive state spending and reining in cheap loans to farmers and state enterprises - which has been blamed for driving money supply growth - would help bring inflation down.

"The month on month figure, which gives a better indication of short-term developments, shows inflationary pressures are still strong," Farayi Dyirakumunda, analyst at Interfin Securities, told Reuters.

"We cannot expect a reversal without a shift in fundamentals," he added.

Nampa-Reuters

Marketplace News Headlines Of The Last 48 Hours

•  Financial meltdown knocks global factories
•  Tensions brew over EU's vetting of state aid to banks
•  DBN assistance paves way for women
•  China urges developed states to take lead in climate change
•  Bridgestone puts on the brakes at US plant Japanese firm will cut jobs and stop making tyres
•  Price transparency for Nam's telecoms sector
•  Consumer debt affects health
•  The mantra of the big guns and the cries of the back streets
•  SA mining unions call for halt to new lay-offs
•  Polytechnic receives financial boost
•  Nam moves to get ban on exports to SA lifted
•  BEE firms in SA must bail themselves out, say black managers
•  Maputo remains optimistic about foreign aid flows
•  US$500m biofuels project wants Mozambican labour to produce ethanol
•  Union asks leaders not to back down on aid for decent work
•  House market will worsen in South Africa, says Absa
•  Fortescue shares surge on bid rumours by BHP and China
•   Chinese manufacturing drops sharply
•  Ryanair makes new takeover bid for Aer Lingus