In February, consumer prices rose at an annual rate of 7.3%.
In the 2010 the economy grew by a thumping 8.5% and the rate of growth seems to have continued into 2011: in the final quarter of 2010 the quarter-on-quarter rate of growth was 1.5%.
Some of the growth is statistical: 2010 was a year with normal rainfall, after 2009's drought, so hydro-electricity generation was up by 90%. Even so, leaving such anomalies aside, the economy looks dauntingly strong: commerce in 2010 was up by 14.8%, year-on-year. Transport and communications was up by 14.6%.
What is slightly surprising is that growth in the construction sector was modest at 4.3%. This sector is likely to accelerate this year as some big public works projects, notably greater power line integration with Brazil, get underway.
Agriculture, despite the better rainfall, had a so-so year, growing just 1%. Livestock farming, especially sheep and beef farming, is not in a good state.
Industry also had a moderate sort of year, growing 3.7%.
What did grow strongly in 2010 was private sector demand. This was powered by higher wages, lower unemployment, better pensions and decent corporate profitability. Private sector demand was up by 11.4% in 2010. This led to a 14.4% jump in fixed investment and overall investment is running at 18% of GDP, well above traditional levels.
Even with a half point rise, and perhaps three more such increases over the next few months, the economy should still mange 5% growth in 2011.
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