Sudden liberalization of prices brought an average price increase of 79.6 percent in the program's first month. The high prices were intended to eliminate some major distortions in pricing and begin to adjust demand to the existing limited supply. Price liberalization stopped hyperinflation but, unexpectedly, inflation remained high.
Annual price increases were 250 percent in 1990 and 70.3 percent in 1991. Except for the first quarter, however, average quarterly price increases in 1990 were considerably smaller than the equivalent increases in 1989, when the administrative system of price determination and controls still dominated. The average quarterly price increases were lower in 1991 than in 1990.
Data as of October 1992