Thursday, May 31, 2007

Inflation breaches target range

More evidence of inflation creeping up and out of control:

"South Africa's targeted CPIX inflation pierced the upper end of the central bank's band in April, rising 6.3 percent year-on-year, official data showed, and hardening the case for higher interest rates.

Figures from Statistics South Africa showed that key measure jumped from 5.5 percent in March on higher food and fuel costs, while the all-items consumer price index increased by an annual rate of 7.0 percent, from 6.1 percent previously.

A Reuters poll had predicted that CPIX would rise by 5.9 percent while CPI would grow by 6.5 percent."

To read the full story, click

The retail and financial sectors of the market are likely to be under pressure over the next week. Should the Reserve Bank decide to raise the interest rate, the market may fall even further.

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