Inflation accelerates in October, as expected
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%.
Contraction in economy looms in the first quarter
17/05/2019 - 09:16
Weak performances in the retail, mining and manufacturing sectors, which bore the brunt of the most severe power cuts the country has experienced yet, indicates that the economy contracted in the first quarter of the year.
Retail sector barely budged in March
16/05/2019 - 09:54
Consumers were under pressure in March with a 74c/l hike in the petrol price and slightly higher inflation.
Load-shedding knocks mining and manufacturing in the first quarter
13/05/2019 - 09:36
Despite a better performance in March, both sectors recorded contractions in the first quarter of the year - with production severely constrained by load-shedding.
SA retailers seek post-election boost as belts tighten
10/05/2019 - 11:02
Londani Nemaguvhuni’s Sunday trip to the Mall of Africa north of Johannesburg is a finely balanced operation. The 29-year-old has to provide for his young son but also needs to cut costs.
How e-tailers can survive the slow economy
10/05/2019 - 10:18
Talk of a looming global recession continues to impact emerging markets. And, as South Africa continues its longest downward cycle in many decades, local business owners are actively looking for ways to shore up ahead of future uncertainty.