Inflation accelerates, but less than expected
By Robert Laing - May 23rd 2018, 13:25
Inflation, as measured by the annual change in the consumer price index (CPI), accelerated less than expected to 4.5% in April from 3.8% in March.
Economists had expected inflation to heat up as the various tax and levy increases introduced in the 2018 budget took effect on April 1.
This took the index, which was set to 100 in December 2016, to 107 points in April from 106.2 in March and 102.4 in April 2017.
At 4.5%, April’s inflation came in lower than the economist’s consensus of 4.7%. It places inflation exactly in the middle of the Reserve Bank’s 3%-6% target range, strengthening the case for the central bank to hold interest rates steady.
Reserve Bank governor Lesetja Kganyago is expected to announce that the monetary policy committee has decided to keep the Bank’s repo rate steady at 6.5%.
By convention, South African banks add 3.5 percentage points to the repo rate to set their prime rate. If the repo rate does not change, the commercial bank’s prime rate will remain level at 10%.
The 72c/litre increase in the price of petrol in April contributed to the fuel component of CPI showing 9% annual inflation.
This matched a 9% inflation in meat prices.
Overall food inflation was 3.7%, with fruit prices falling 8.2%, and bread and cereal prices falling 3.7% over the year.
The clever shift SA's economy can make: economist
13/11/2019 - 13:29
Finance minister Tito Mboweni’s medium-term budget gave a blunt presentation of the financial issues facing South Africa and it is clear that government has finally come to grips with reality, says Efficient Group economist Francois Stofberg.
Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.
Black Friday hype begins as retailers test shoppers with 'teasers'
06/11/2019 - 09:15
Retailers’ gloves are off in the battle to gain market share ahead of Black Friday, with several deals already being unveiled to attract customers.
Manufacturing sentiment improved in October
05/11/2019 - 12:52
Manufacturing activity recovered in October, improving on the previous month’s revised figures and beating market expectations.
Unemployment hits highest level in more than 11 years
30/10/2019 - 11:38
South Africa's unemployment rate has worsened to 29.1%, the highest level in more than 11 years.