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Thursday, 22 May 2008

Inflation value destruction in South Africa

March 2008 CPI 153.9 Annual inflation 10.6%

Real value destroyed in 2008

1. By 10.6% cash inflation in monetary items, that is, in M3: 10.6% of R1.751361 trillion = R185 billion per annum

2. Unwittingly by SA Chartered Accountants: 10.6% Historical Cost Accounting inflation in the real value of Retained Income of companies listed on the Johannesburg Stock Exchange = Billions per annum. Actual amount in the process of being calculated.

3. Unwittingly by SA Chartered Accountants in other constant items never or not fully updated = Billions per annum. Value unknown.