creases than imports, as a result of shortfalls in supply. 25. In the Ugancan eccncmy, which hac recorcec the hifhest price increase among African economies in 1979 (216.5 per cent), im­ provements were noted in the inflation rate. ~he liberalization measures taken by the Government, such as freely floating the currency and deregulating prices, at first resulted in an im­ mediate rise in prices. But as markets became better supplied and distribution facilities improved the price rise began tc slow down. Nevertheless, the inflation steed at a high 75 per cent in 1981, reflectin£ in part the cecisicn cf the Government tc raise the retail price of petroleum above its import cost to secure hifher bucget revenue. 103 E/ECA /C'rl. 9/5 26. bile the 01screpancies prew between inflation rates at heme ana 2.broac, many Governments showed some reluctance to chanre the nominal eYchanre rates of their currencies. This was cue in part to the difficulties involved in assessinr the appropriate foreign eYchanpe action at a time when v1crld market conditions for traded goods were subject tc e>:tensive chanres. In aodition, fiven the low short-run :r:rice elasticities of supr,ly and demand for most primary comrnoCities eYpcrted by African countries, the beneficial effects of eYchanpe rete adjustments were not obvious. Besides, the impact of devaluation on consumer prices was likely to have important social and political implications. 27. Accordinf tc an IMF study,~)/ between 1973 and 1981 African countries eYperiencec hipher appreciation of real effective e:x­ chanfe rates 14/ than countries in any other rerion (44 per cent). This arpreciation was most marked in Ghana, the Sudan, the United Rep~blic of Tanzania anc Zaire, where eYchange rate chanees only partially offset the hifh rates of inflation. D. Financial developments 1. General trends 28. As the prec8Clnf pararraphs surrest, the eYternal and inter­
**Analysis**
The text appears to be discussing economic trends and policies in African countries, specifically related to inflation, exchange rates, and financial developments. It mentions the impact of government policies, such as liberalization measures, on the economy, as well as the effects of inflation and exchange rate changes on consumer prices. The text also references an IMF study, indicating that the focus is on macroeconomic issues rather than specific sectors like agriculture or industry.

**Category**
Economic development, International trade