How can Government Control Inflation Rate? (Answered)

Answer to, how government can control inflation, and brief explanation of what causes inflation in a country.

What is inflation?

In simple terms, inflation is the rice in the price of goods in a country due to decreasing value of its currency.

What Cause Inflation?

The major cause of inflation is the rice in price of goods

Others causes include;

• Over supply of money
• High National Debt

How can government control Inflation?

Measures that may be taken by the government to control inflation include:

Setting minimum and maximum wage limits to control salaries. 

• Restricting imports
• Controlling of exports
• Restricting terms of hire purchase and credit terms of sale
• Price control
• Offer of subsidies and other incentives to local producers
•  Controlling the supply and circulation of money in the economy

List of Countries with Highest Inflation Rate in Africa

Below is a list of countries with highest inflation rate in Africa (Last Updated 27th May 2019, Source: tradingeconomics inflation).

1. Zimbabwe 75.8%
2. South Sudan 56.10%
3. Sudan 45.40%
4. Liberia 23.30%
5. Sierra Leone 17.46%
6. Angola 17.36%
7. Egypt 13.00%
8. Ethiopia 12.90%
9. Nigeria 11.37%
10. Guinea 9.70%
11. Ghana 9.50%
12. Malawi 9.10%

Want to learn more about inflation Africa? Read this Journal done by Philip Hans Franses from Erasmus School of Economics.

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