Skip to main content

Consumer inflation slows to within the Reserve Bank’s target

| Economic factors

Consumer inflation slowed in July, with the consumer price index (CPI) rising 6% year on year, from 6.3% in May.


That was a little better than expected and brings consumer inflation just within the Reserve Bank’s 3%-6% target.

A median consensus forecast from 12 economists was for inflation to have slowed slightly to 6.1% in July.

Month on month, though, CPI inflation accelerated to 0.8% in July, compared with a 0.6% increase in CPI in June from May, Statistics SA data showed on Wednesday.

Consumer inflation data are keenly watched for clues about the direction of the Reserve Bank’s monetary policy. The Bank next meets in September. An improving inflation outlook, supported by a firmer rand and pedestrian growth, strengthen the case for interest rates to remain unchanged.

Until recently, the prospect of global interest rates remaining low was another factor helping the Bank to stay its hand, but comments from US Federal Reserve officials have been increasingly hawkish.

Pin It

Related Articles

South Africans are resilient people who are always ready to seek solutions for problems, even if the trials they face are caused by events that are beyond their control. An empowering example of this approach to life is the use of grocery stokvels...
In response to rising food costs, The SPAR Group offers practical tips for beating food inflation through savvy shopping and creative cooking.
By: Myles Illidge – MyBroadband South Africa’s Road Accident Fund (RAF) tax and General Fuel Levy (GFL) add between R272 and R483 to the price of a tank of fuel, depending on the size of your car’s tank.
By: Shaun Jacobs – Daily Investor Major changes are coming to VAT in South Africa, with the government looking to expand the range of food items exempt from the tax. 
By: Hanno Labuschagne - MyBroadband An anticipated strengthening of the rand and slipping global oil prices could result in lower petrol prices at the pumps next month.