Advertise with fastmoving.co.za
 
 

The sharp increase in the fuel price contributed to the rise in the consumer price index.
The sharp increase in the fuel price contributed to the rise in the consumer price index.

Inflation accelerates in October, as expected

ECONOMIC NEWS

By Sunita Menon - Nov 21st 2018, 11:01

Inflation accelerated slightly to 5.1% in October from 4.9% in September, matching the economists’ consensus.
 

Inflation was expected to accelerate due to October’s R1/l petrol price and R1.24/l diesel price increases.

Stats SA reported that September’s consumer price index (CPI) came to 109.4 points, up from 103.9 in October 2017 and 108.9 points in September 2018.

Inflation, as measured by the annual change in CPI, is the key measure used by the Reserve Bank’s monetary policy committee to set interest rates. The committee is scheduled to announce its next interest rate decision on Thursday.

Half of the economists polled by Bloomberg expected a rate hike while the other half expected the repo rate to remain unchanged.

Although inflation remains well under the Reserve Bank’s 6% ceiling, concern that inflation will continue rising may prompt the Bank to raise its repo rate from 6.5% to 6.75%. The monetary policy committee has made it clear that it would prefer inflation around the 4.5% midpoint of the 3%-6% target range.

The 0.2 percentage point increase in inflation matched the consensus of a poll of economists done by Trading Economics.

The fuel component showed an increase of 22.8% compared with a year ago, and a 6.1% increase compared with the previous month.

Stats SA reported the food component of CPI showed inflation of 2.9%.

Average fruit prices fell by 4.2% in October from the same month in 2017.

Vegetable prices, however, rose 7%.
 

Read more about: cpi | sa economy | stats sa | inflation

Related News

Load shedding threatens jobs, economic recovery, says consumer body
22/03/2019 - 13:31
Load shedding, which has been escalated to Stage 4, is posing a significant risk to economic recovery, the Consumer Goods Council of South Africa said in a statement, as rotational blackouts continued to grip the country.

Retail sales recover in January after dismal December figures
22/03/2019 - 09:23
Retail spending showed signs of recovery in January, growing 1.2% on an annualised basis, slightly faster than analysts had expected.

SA beef export market reopens to the Middle East
22/03/2019 - 08:23
The recently held Gulfood Trade Show 2019, which took place at the Dubai World Trade Centre, saw the reopening of beef trade between South Africa and the Middle East.

Business counts cost as Eskom battles power shortages
20/03/2019 - 09:14
State utility Eskom will make more power cuts this week as it struggles with capacity shortages that threaten to stymie President Cyril Ramaphosa’s efforts to boost investments and economic growth.

SA meat price inflation to remain subdued due to foot-and-mouth outbreak
19/03/2019 - 11:27
SA’s meat price inflation could remain subdued in 2019 as a ban in exports could increase local supplies, according to the Agriculture Business Chamber (Agbiz), an organisation that represents commercial farmers and agribusiness.