Advertise with

Consumer inflation slows again
Consumer inflation slows again

Consumer inflation slows again


Fin24 - Apr 18th 2012, 11:42

Johannesburg - South Africa’s consumer inflation slowed to 6.0% year-on-year in March, in line with market consensus from 6.1% in February, Statistics South Africa said on Wednesday.

On a month-on-month basis, inflation quickened to 1.1%, compared to 0.6% in February - also as economists had expected.

Inflation is now at the upper end of the central bank’s 3-6% target band.

Nomura economist Peter Attard Montalto said it may bounce higher next month to 6.1% but is expected to slide down to just over 5% by the end of the year.

“However, in terms of the breakdown, crucially core (inflation) surprised to the downside by a notch at 4.4%. Food including non-alcoholic beverages also confirmed its decelerating trend, falling to 8.6% from 9.7% previously."

The South African Reserve Bank targets a 3-6% level of headline inflation. The consumer price index has been outside that band since November.

The bank said last month inflation pressures are becoming more broad-based, reflecting a rising trend in both core and headline inflation. Reservel Bank governor Gill Marcus said she does not see inflation “running away”, but it is an area the bank needs to watch closely.

The bank expects inflation to peak in the second quarter at 6.5% from a previous forecast of 6.6%. 

Related News

Inflation steady at 4.5% in June
24/07/2019 - 13:08
Consumer inflation was slightly higher than expected in June, unchanged from May’s 4.5%, but remained at the midpoint of the Reserve Bank’s 3%-6% target range.

US retail sales rise as households spend more
18/07/2019 - 14:16
US retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the hit on the economy from weak business investment.

Inflation accelerates slightly in May
19/06/2019 - 11:24
Inflation accelerated slightly to 4.5% in May, giving impetus to calls for an interest cut in July.

Inflation accelerates in March after painful fuel price increase
17/04/2019 - 13:29
Another fuel price hike in March led to inflation hitting the midpoint of the Reserve Bank’s 3%-6% target range.

Major food and drink firms aim to improve plastic recycling in Africa
02/04/2019 - 10:02
Diageo, Unilever, The Coca Cola Company and Nestlé have joined forces to improve the collection and recycling of plastics in Africa.