Zimbabwean president Robert Mugabe today accused Britain of trying to seize control of resources in the devastated African nation, as his government announced inflation had risen to 2.2 million per cent.
Re-elected last month in a widely condemned vote boycotted by the opposition, Mr Mugabe regularly blames his country's economic collapse on former colonial ruler Britain and accuses it of plotting to overthrow his government.
The 84-year-old leader, in power for 28 years, has branded the opposition Movement for Democratic Change a British and American puppet.
"What is Zimbabwe to Britain? The answer has not been provided, but we know what they want. It's regime change, so the resources of our country can come under their control," Mr Mugabe said at the televised launch of a food subsidy program.
Zimbabweans are suffering chronic shortages of meat, maize, fuel and other basic commodities due to the collapse of the once prosperous economy, which critics blame on Mr Mugabe's policies, including his violent seizure of white-owned farms.
Central bank governor Gideon Gono announced today that inflation had surpassed 2 million per cent, a figure already calculated by economists, some of whom now put it much higher. Officials in February calculated Zimbabwe inflation at 164,900 per cent, already the highest in the world.
The worsening economy could add to pressure on the ruling Zanu-PF party to make concessions to the MDC, which refused to recognize Mr Mugabe's victory in the June 27th presidential run-off.
Mr Mugabe's efforts to prevent the devaluation of the Zimbabwean dollar have been a dismal failure.
His government imposed a draconian price freeze last year in a bid to ease the plight of consumers, prompting stores to stop restocking their shelves. The move worsened shortages of basic items for millions of Zimbabweans.
The central bank also introduced a new dollar, forcing people to exchange their old notes in a process rife with corruption. The currency trades at 300 billion to the US dollar on the black market, over 10 times the official rate.
Mr Mugabe said today a new food subsidy program, which will issue coupons to buy food, was part of a renewed bid to tackle inflation and control pricing practices.
"Government is broadening its fight against the inflation dragon, as well as amply demonstrating to the private sector that those who do not cooperate risk pricing themselves completely out of the market," he said. "It was "a strong message to the corporate sector that the era of unjust price increases has come to an end".