An inflation conundrum

Suppose someone had told you, on June 30, 2008, that M1 would grow, over the next 6 months, at an annual rate of 15.4%. And suppose s/he also told you that the rate of inflation (calculated on the basis of the current month CPI cpmpared with the 12-months-earlier CPI) would fall from more than 5% to -0.5% (that's minus 0.5%). Would you have believed that to be possible?

Well, believe it. That is exactly what has happened.