Inflation slowed slightly to 17.24% from 17.26% the previous month. Although this directional movement was expected, the magnitude of the change is lower than expected. This reflects the possibility that waning base year effects have become less potent.
Prices have remained sticky downwards in spite of improved dollar liquidity. The planting season is still in play and with the Ramadan http://www.aipa.com.au/levitra-online/ season fast approaching, we expect the food basket to remain an outlier in the inflation trend.
The MPC is meeting next week and although inflation numbers have eased year- on- year, we expect the committee to maintain the status quo as inflationary pressures persist.
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