Inflation down to 6.9%, South Africa cuts interest rates - growth projected for 2010

Businessday.co.za: The governor said global inflation appeared to be under control despite the significant monetary accommodation in a number of advanced economies. However, he added that domestic economic conditions remained subdued amid indications that the economy contracted further in the second quarter of 2009, "although at a slower rate of contraction than in the previous quarter".

SHOOT: Emerging economies to average 4.7% growth in 2010. Really? If it happens I can't see it being sustainable for very long. Energy premiums will eventually gobble up all gains, loopholes and profit corners.

clipped from www.businessday.co.za He said that the year-on-year inflation rate as measured by the consumer price index (CPI) for all urban areas had declined from 8,0% in May 2009 to 6.9 percent in June. Mboweni said producer prices had declined at a year-on-year rate of 4,1% in June, compared with a decline of 3,0% in "The cautious optimism that the bottom of the cycle may have been reached continues to prevail, although some analysts still doubt the strength and sustainability of this recovery." He said the recovery was also not expected to be uniform across countries or regions. According to the July 2009 World Economic Outlook of the International Monetary Fund, global output was expected to contract by 1,4% in 2009 before recovering to 2,5% in 2010, Mboweni said. The developed economies were expected to grow by 0.6 percent, while growth in emerging economies was expected to average 4,7% in 2010.