Do we really have an Inflationary pressure in Puntland?

Introduction

After scrutinising at the actual situation in Puntland we seem to have come to the conclusion that the simple answer is NO for the claimed Puntland inflationary predicament.
Let us draw our facts from some reliable sources a few key lines to answer this big question at this point in time.

Before we do that, we will attempt in this Policy Briefing to make some inherent definitional confusions between inflation and devaluation (depreciation) in Puntland as well as deflation and revaluation (appreciation). It is not clear that these phenomena occur in two distinct markets (Financial Market and Goods & Services).

We will begin to make some clarification on these definitional transcriptions:

1. Devaluation (Depreciation)

An increase in the Exchange rate (SoSh/US$) is NOT inflation but can cause or influence inflation rates provided that all people in Puntland use the SoSh;
Revaluation refers to an upward adjustment to the country’s official exchange rate the relative to price of the foreign currency (US$). In the same vein appreciation of a currency associated with a floating or managed floating exchange rate system. Whereas revaluation of a currency is associated with the fixed exchange rate regime. Impacts of appreciation and revaluation of a currency. Exports: Appreciation and revaluation of currency make the exports less competitive in the international market. In other words, both appreciation and revaluation have similar impacts but they have some differences.

Revaluation increases the value of the domestic currency with respect to the foreign currency. Revaluation is a feature of the fixed exchange rate regime, where the exchange rate is determined by the central bank or the government. Revaluation is opposite to devaluation, (or depreciation) which is a downward adjustment.