Of the two main challenges for the Fed, a slight slip in activity versus a pick-up in inflation, we think insuring long- term price stability is the more pressing issue.

I expect the high inflation environment to persist in the coming months due to effects of drought. In broad terms, Kenyans should expect to dig deeper into their pockets.

There are millions of people out there who don't get inflation-busting increases whatsoever.

Inflation is going to remain in the top half of the target range and (it's) all very consistent with monetary policy needing to remain relatively tight for some time,

Despite low unemployment, wage growth remains contained. With job gains slowing, the risks from wage inflation appear to be receding. Interest rates will remain on hold in 2006.

Inflation in March will probably be lower because school tuition won't be in the mix. (The car fuel) ethanol could be a factor but March is traditionally low for inflation, so I see a result of about 0.3 percent.