Skip to main content

South Africa inflation rate drops to six-month low in July

| Economic factors

Consumer price growth slowed to 4% from 4.5% in June, the Pretoria-based Statistics South Africa said Wednesday in an emailed statement.

The median estimate of 15 economists in a Bloomberg survey was 4.3%.


Key Insights:

·         Inflation has remained at or below the 4.5% midpoint of the central bank’s target band every month since December, the longest such streak in more than eight years.

·         The Monetary Policy Committee revised its inflation forecast for the year to 4.4% from 4.5% at its July meeting. The panel cut the benchmark interest rate by 25 basis points to 6.5%.

·         A volatile exchange rate and potential return to economic growth in the second quarter may limit the scope for further easing in 2019.

·         With consumer spending under pressure, the prices of clothing and footwear and household appliances rose less than 2% from a year before, adding to the lower inflation rate.


Pin It

Related Articles

‘Desperation is the new normal’ for South Afric...

By: Opinion – IOL Business Report South Africans have been collectively waiting with bated breath for some small financial reprieve from the relentless price hikes of the past few years that have driven them to the brink of despair, chief among t...

SA retail sales up 2.3% in March

Stats SA reports that retail trade sales increased by 2.3% year-on-year in February 2024. The largest contributor to this increase was general dealers (6.4% and contributing 2.8 percentage points).

Massive tax increases to fund NHI – destroying ...

By: Shaun Jacobs – Daily Investor Funding the government’s National Health Insurance (NHI) scheme would require a 31% increase in personal income tax, or a 6.5% increase in VAT, or a ten times increase in payroll tax, threatening South Afric...

SA consumers’ disposable income eroded by high ...

By: Given Majola - IOL Business South African consumers’ disposable income was being eroded by persistently high interest rates and inflation (especially food inflation) while a lack of any meaningful economic growth was constraining their salaries.

Nearly half of South Africans struggle to affor...

By: Xolile Mtembu - IOL South Africans spend over one-third of their income on food, and growing costs have a significant impact on their finances.