Skip to main content

Inflation picks up a little faster than expected

| Economic factors

Inflation, as measured by the annual change in the consumer price index (CPI), accelerated to 5.1% in September from 4.8% in August.

This was worse than the economists’ consensus of 4.9%, but remained comfortably within the Reserve Bank’s target range of 3%-6%.

The CPI measures changes in the price of consumer goods and services purchased by households in urban areas.

On average, prices increased by 0.5% between August and September.

Food inflation continued to moderate. Food and nonalcoholic prices rose 5.5% from a year earlier in September, after a 5.7% increase in August and a 6.8% rise in July.

Economists had expected inflation to edge up in September, due to higher petrol costs and the expected effect of quarterly price surveys of rental inflation and domestic workers’ wages.

Many economists expect inflation to fall to the midpoint of the inflation target range in early 2018 before stabilising at about 5.5% in the second half of the year.

The Reserve Bank did not cut interest rates at the last monetary policy committee (MPC) meeting in September but economists expect a 25 basis point cut in November.

Pin It

Related Articles

Budget: Liquor, cigarettes to cost more, no inc...

By: IOL Finance 2024 Budget made provision to raise R15 billion in taxes to alleviate fiscal pressure and support debt stabilisation.

Retail consumers now seeking value as cost of l...

By: IOL COST-of-living pressures muzzled sales volumes for retailer Spar’s Southern African business, including South Africa, although group turnover, which also accounts for its stores in Switzerland, Ireland and England, was up 9.3% for the fiv...

Excessive heat could result in higher food pric...

By: Given Majola - IOL The excessive heat across South Africa currently is a significant concern for the farming sector, according to the Agricultural Business Chamber (Agbiz).

Budget 2024: South Africans should not expect a...

By:Dhivana Rajgopaul - IOL Amid the budget deficit not moving in the right direction, a tax specialist has said South Africans can expect Finance Minister Enoch Godongwana to raise the price of beer and cigarettes, but being an election year, no ...

Retail sales cool in 2023 with consumers still ...

By: Siphelele Dludla - IOL Consumers in South Africa are expected to continue struggling this year under the brunt of stubbornly high inflation, rising cost of borrowing and weak consumer confidence after retail activity plunged in 2023, in spite...