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The second quarter was quite a volatile time for the financial markets, with inflation as the main driver for market sentiment. The monthly inflation figures for April to June are 2.2%, 3.91%, and 2.14%, respectively. This brought year to date inflation to 18.4%, far exceeding the government’s initial target to make it lower than the GDP growth. Many believe that the reason for the problem is the economic overheating, in that the money flowing in for investment could not be fully absorbed by the country. This is due to slow growth in infrastructure, and other production factors. This also led to the costs of production increasing, and as a result, prices of goods also increased at the consumer level.
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