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May 27, 2011

INFLATION PRESSURE COOKER:

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INFLATION PRESSURE COOKER:
Food|Oil Prices|Gill Marcus
|
food|oil-prices|gill-marcus
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South African Reserve Bank governor Gill Marcus did not mince her words when she cautioned recently that the inflation threat was accelerating. “While inflation appears to be under control, there are increasing risks to the outlook posed by rising global commodity prices, particularly food and oil prices. Should food and oil prices impact on domestic inflation by more than is currently expected, we may see inflation moving towards the upper end of the target range sooner than expected.” That also means that the next interest rate move will be upwards. The only real imponderable now is timing.

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