CEPA predicts 12% end-year Inflation

The Centre for Policy Analysis (CEPA) insists inflation will end the year at nearly 12 percent by December 2012.

The economic think tank says its modelling technique proves that the inflation rate will not end the year with a single digit.

The Government has projected an end-of-year inflation rate at 8.5 percent.

But with the season of low inflation beginning from August to October despite the rate going up by 0.1 percent to 9.5 percent in July, the Executive Director of CEPA, Joe Abbey said he doubts the year will end with a single digit inflation rate.

“The determinants we know of inflation make us believe that we are talking more like outside of the single digit thing, 12 percent. We will stay it till the end of the year”.

Despite the low inflation rate, interest rates continue to remain high above 20 percent. Dr. Abbey however expressed regrets that lending rates are still high.