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

Black Friday boosts November’s retail sales
16/01/2019 - 14:12
Consumers came under pressure in 2018, with the first VAT hike in two decades and steep fuel price increases.

Tiger Brands set to bounce back in 2019
15/01/2019 - 11:47
Tiger Brands, which lost R1.4bn in revenue in financial 2018 due to listeriosis, looks set to bounce back from the deadly outbreak, with revenue and earnings to rise steadily in the next three years, according to brokerage firm Arqaam Capital.

Another boost for the manufacturing sector in November
14/01/2019 - 11:09
Production from SA’s factories continued to improve in the last quarter of 2018, data from Statistics SA (Stats SA) showed.

Factory owners end 2018 in upbeat mood
09/01/2019 - 14:03
Activity in the manufacturing sector reached its best level in 2018 in December, ending the year on a strong note.

SA records trade surplus in November
07/01/2019 - 08:43
SA recorded a trade surplus of R3.49bn in November, statistics released by Sars reveal. However, for the 11 months to end-November, there was a trade deficit amounting to R4.16bn, a deterioration on the surplus for the comparable period in 2017, of R62.3bn.