In the four SDR countries – United States of America, Euro zone, Japan and United Kingdom – average inflation was zero. Low inflation was due to a fall in international commodity prices and subdued demand. The resulting low capacity utilisation and high unemployment exerted downward pressure on wages and other prices.
In other instances, some developed economies, such as Japan, a fall in prices or deflation is once more a matter of major policy concern. The overall trade-weighted average inflation of Botswana’s trading partner countries slowed down from 6.1 percent in 2008 to 4.4 percent in December 2009.