Moreover, I believe that an increasing number of firms may raise the prices of their goods and services by passing on cost increases to selling prices, owing to the prospect that the pandemic will continue for some time. The second factor is firms' growth expectations.
Caution is warranted, nonetheless, as temporary monetary and fiscal stimulus measures may be providing a false sense of security. BIS Review 121/2009  3  As for South Africa, although growth continued to contract in the second quarter of this year, the pace of contraction slowed from -6,4 per cent in the first quarter to -3,1 per cent in the second quarter.