WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2008-10-31 Time: 02:00:11 Posted By: Jan
Producer-price inflation slowed to 16 percent year-on-year in September from 19,1 percent in August, Statistics SA said on Thursday.
“The decline in PPI is encouraging, with the size of the drop suggesting that producer inflation has peaked…Although PPI could remain sticky in the coming months, we expect it to decline rapidly in the second half of 2009,” Nedbank said in its commentary on the data.
It added that the rand’s rapid plunge during October, however, had introduced an element of uncertainty in the outlook for inflation.
The local currency had since recovered notably and if this continued the impact of the currency weakness on inflation would be “negligible”.
“This, combined with the sharply lower international commodity prices point towards easier inflationary pressures at the production level in the coming months,” Nedbank said.
The bank added that both consumer and producer inflation appeared to have peaked and were expected to trend downwards. “Although the weaker rand remains a concern, it is unlikely to fundamentally alter the inflation outlook.”
Prospects for the domestic economy had continued to worsen, Nedbank said, as the local economy was unlikely to escape the impact of a recession in its major trading partners and significantly slower global growth.
“As the domestic economy looses momentum, the case for monetary easing will become increasingly compelling,” Nedbank noted.
It expected that by April, with inflation firmly in single digits, the Reserve Bank would begin cutting rates.
However, Nedbank warned that should the rand depreciate, the Reserve Bank might be reluctant to cut interest rates as soon as the market expected.
The SA Reserve Bank will release its bi-annual Monetary Policy Review on Tuesday.
This document was expected to provide insight on the bank’s assessment of the current inflation environment, Nedbank said. – Sapa
Source: http://www.iol.co.za/index.php?art_id=nw20081030170407304C610111