Inflation rate moves closer to target - 30th Jul 2009
Due to a a PPI (Producer Price Index) that is 4.1% lower than last year the inflation rate has dropped significantly down to 6.9% and now remains just outside the intended corridor of between 3% and 6%.But one must doubt that this is enough to sway the Monetary Commetee towards a further rate cute as ESKOM's tariff hike of more than 30% as well as most of the two digit increases in recent wage negotiations will only show their effect on the inflation rate over the weeks to come.
It stands to marvel about Tito Mboweni, who might surprise everybody during his last days in office.
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