There was some deterioration in inflation expectations, which probably drove overall confidence lower, but the decline is so small, it is not that significant.

The market is calm despite expectations the government may increase the money market 'short' because inflation figures were high and overnight money market rates are low.

After two or three months of inflation numbers coming in above expectations you start to revise inflation expectations upward, which puts pressure on domestic interest rates.

International oil prices reached new record highs last week, which do not bode well for local fuel costs.

Consumer demand is expected to remain fairly healthy in 2006, especially given the further tax relief announced in the annual budget.

I think it's safe to say that if the rain remains below average, then we won't see prices coming down much below current levels.