South African consumer price inflation in a historical and global context

Abstract

One of the most important and welcome economic developments over the last two decades has been the steep decline in inflation in the world economy. For example, the average annual inflation in major advanced economies declined sharply from 12,3 per cent in 1980 to 1,7 per cent in 2003. Average inflation in emerging-market and developing countries, conversely, increased from 25,0 per cent in 1980 to 107,7 per cent in 1992, before declining rapidly to 6,1 per cent in 2003.