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

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.

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.

If people are comfortable with where inflation is, they feel comfortable with investing, and it does drive the market.

There are some fears about inflation but people are even more concerned about what's happening in the corporate credit market.