The year-on-year rate of change in the consumer price index (CPI, excluding fresh food) posted a 0.8 percent increase in December due mainly to rises in the prices of petroleum products and food products.
And this is precisely what I would call a balance of payments crisis: a sudden stop in the inflow of private capital that requires a correction of unsustainable developments and policies. The reason for the sudden stop in private capital inflow was a loss in creditors’ confidence in countries’ solvency.