May 16 (Bloomberg) -- Inflation in Zimbabwe surged to 355,000 percent in March as food and non-alcoholic beverage costs jumped, the Zimbabwe Independent reported, citing the Finance Ministry.

The inflation rate rose from 164,900 percent in February, the Harare-based newspaper said on its Web site.

Zimbabwe has the world's highest inflation rate. The southern African nation is in its 10th year of economic recession and has the fastest-shrinking peace-time economy, according to the World Bank.

To contact the reporter on this story: Brian Latham via the Johannesburg bureau at pmrichardson@bloomberg.net.

Last Updated: May 16, 2008 04:00 EDT