Inflation in South Africa: 1921 to 2006

This overview of inflation in South Africa covers§developments between 1921 and 2006. The main§contribution of this research is the development of§an inflation credibility barometer that can be used§for the measurement and comparison of inflation§credibility. The barometer measures out of 100 the§degree of acceptance of the accuracy of historic§inflation figures. The methodology can be used for§the international measurement (and comparison between§countries) of the credibility of inflation figures§and sets a benchmark for the future measurement of§inflation credibility. Countries targeting inflation§by 2006 are considered in detail. A cluster of 23§countries was identified as inflation-targeting§countries in 2006: Australia, Brazil, Canada, Chile,§Colombia, Czech Republic, Hungary, Iceland,§Indonesia, Israel, Mexico, New Zealand, Norway, Peru,§Philippines, Poland, Romania, Slovakia, South Africa,§South Korea, Sweden, Thailand and United Kingdom. §Subsequently (in 2007) Ghana joined this cluster of§countries, although the inclusion or exclusion of§certain countries as inflation targeters in this§cluster is still the topic of some debate.