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May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 28 2012 07:53
The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - The possibility of near-term positive
inflation surprises remains, given the rand's continued strength, but beyond
the middle of next year, the outlook is decidedly more worrying, according to
economists.
"We thus remain comfortable with the view that rates have bottomed and that
the next likely move will be up," says economist from Cadiz, Adenaan Hardien.
"Although consumer inflation will likely breach the target in December, the
latest report again confirms the possibility of near-term positive surprises.
Inflation is expected to move higher due to the unwind of positive base
effects, a 27 cents per litre petrol price hike and the inclusion of the bi-
annual surveys of rentals and owner's equivalent rent," he says.
"We expect consumer inflation to peak in January and slip back into target
by the end of the first quarter. But we expect consumer inflation to again
breach the target from the fourth quarter of 2010. This will largely be the
result of the inclusion of residential electricity tariff adjustments from
July," says the economist.
Economist from Efficient, Freddie Mitchell, says "lower inflation rate
levels may disappear in 2010 onwards when the Eskom tariff hike take effect in
March 2010 to 2012".
At the moment, though, he says that weaker consumer demand coupled with
a stronger rand and decreasing producer prices is taking its toll on sales by
businesses and retailers within the economy and consequently "pushing down"
prices.
It is not likely that near-term surprises will entice the central bank to
cut rates again.
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