The inflation rate hit 1,000 percent in the period mid-2019 to mid-2022. The price index soared from 109 at the end of June 2019 to 1,286 at the end of June 2022. This upsurge was the outcome of mistaken fiscal and monetary policies, which included injecting a large amount of liquidity in the economy.
Unchecked monetary expansion
During that period, currency in circulation increased seven times from LL5.9 trillion to LL39.9 trillion, as a result of financial subsidies and monetary expansion. This is the main cause for inflation that led to the depreciation of the currency in the parallel market. Therefore, high inflation leads to the collapse of the currency. Misleading rumors are spreading
