Monday, 21 December 2009

Zimbabwe switches into official monthly deflation

This piece of news comes from the Mail & Guardian Online.
Zimbabwe, for years plagued by hyper-inflation, has switched narrowly into an absolute price fall on a monthly basis, official data showed on Friday, following adoption of foreign currencies.

The central statistics office said that prices in November were 0,1% lower than in October when monthly prices had shown a rise of 0,8%.

The total disinflationary change from October to November is therefore 0,9 percentage points.
The adoption of foreign currencies is behind the fall,
Since January, inflation has slowed rapidly after the country shelved use of the local currency and adopted various currencies such as the dollar, South African rand, British pound and Botswana pula.
So if you can stop governments printing money you can stop inflation.