The debate over inflation versus growth will linger on because it is true that there is a short-term trade-off - if you want growth you've got to live with inflation.

When you go beyond certain levels, it is the micro-institutional underpinning that sustains growth.

The report assumed that production loss would be uniform across all categories, but in South Africa HIV/Aids prevalence is not equal across all sectors.

Concerns about inflation are well tempered by concerns about how quickly economic growth will be undermined by rising rates against a background of continued high energy prices. When the evidence of that appears in the numbers, the bond market's low long-end yields will look justified.

Inflation is still a threat when U.S. economic growth is relatively strong. It will weigh down Treasuries.

Investors will continue to look closely at U.S. macro data for any sign that growth may disappoint or inflation could surprise on the high side, putting pressure on rates to move up faster than expected.