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Kenya inflation seen down in October, fuel prices a worry
Kenya's year-on-year inflation is expected to fall for the 11th month running in October, helped by a better harvest easing food prices but offset to some extent by rising fuel costs. Despite the signs that inflation could be close to bottoming out, analysts think the central bank has scope to keep easing interest rates as attention shifts to supporting economic growth. Eight out of 11 analysts polled by Reuters predicted inflation would decline in October, with a median estimate of 4.88 percent, down from 5.32 percent in September. Forecasts ranged from 3.60 percent to 6.00 percent. The data is due on October 31. "Inflation is nearing the bottom in the current cycle. While fuel price increases may dampen the downward pressure on inflation, low food inflation is still likely to over-ride them," said Mbiyo Phumelele, head of macroeconomic research at CFC Stanbic Bank. Kenya's Energy Regulatory Commission raised pump prices for the second straight month during ...
Canada may have to downgrade growth forecasts: Flaherty
Canada may have to downgrade its economic and fiscal forecasts to take into account the European debt crisis and the choppy U.S. recovery, Finance Minister Jim Flaherty said on Thursday. In the government's fall fiscal update due in the coming weeks, Flaherty will update the outlook for the federal budget deficit, based on the average growth forecast of private sector experts whom the government consults regularly. "We expected moderate growth, the economists in Canada told us to anticipate moderate growth and as you know, we follow the recommendations (of) the average of a group of private sector economists," Flaherty told reporters. "We're watching closely ... we may have to revise downward somewhat, but so far, we're in the same ball park as we anticipated in the federal budget," he said. The 2012 budget presented in March envisions growth of 2.1 percent for this year and 2.4 percent next year. The International Monetary Fund this month lowere...

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