Wednesday, February 27, 2008

Inflation surges above forecasts to 8,8%

The CPIX number beat forecasts of 8,4% rise and is widely expected to jump further in the first quarter of the year, adding to pressure on the central bank to raise rates again.

"This confirms that inflation remains a very big problem. It is putting serious pressure on the Reserve Bank," said Efficient Group economist Fanie Joubert.

NVDL: Why is this happening? Because the commodity that underpins everything we do is getting more expensive, and sorry to say, will become more expensive over the permanent term. If you think this is a temporary feature unfortunately you're living in a fool's paradise. Koo koo.

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