Wednesday, November 07, 2012

(BN) Vodka for Nuts Clouds Prospects for Bonds: South Africa Credit

South Africa's decision to replace nuts and lentils with vodka and cheese in the consumer price index is damping chances of slower inflation and a recovery for the world's worst-performing bond market.

The new measure will also leave out vienna sausages, add tablet computers and give a heavier weighting to electricity and fuel. Those changes may cause inflation to remain near the top of, or exceed, the central bank's 3 percent to 6 percent inflation target, Leon Myburgh, a Citigroup Inc. (C) rates strategist, said by phone from Johannesburg yesterday.

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