Tough Africans

South African inflation falls for second month in December

Nellie Peyton


FILE PHOTO: Boys help their father pack a vegetable and fruit stall in Soweto, South Africa, September 17, 2020. REUTERS/Siphiwe Sibeko/File Photo

JOHANNESBURG, Jan 24 (Reuters) – South Africa’s consumer inflation fell for the second month in a row in December, to 5.1% year on year from 5.5% in November, statistics agency data showed on Wednesday.

The latest reading takes headline inflation slightly closer to the mid-point of the central bank’s 3%-6% target range, or 4.5%, where the bank has said it wants to see inflation before contemplating interest rate cuts.

The average inflation rate for 2023 was 6.0%, lower than 6.9% in 2022, Statistics South Africa said. Inflation is expected to average 5% in 2024.

The South African Reserve Bank will announce a monetary policy decision on Thursday.

All 20 economists in a Reuters poll published last week predicted it would keep its main lending rate steady at 8.25%.

Analyst Annabel Bishop at Investec said Wednesday’s data was unlikely to change the bank’s view on this year’s inflation.

“MPC (Monetary Policy Committee) … will likely continue to have a hawkish tone, warning of inflation risks, although on balance is expected to keep interest rates unchanged,” Bishop said.

“The MPC’s last meeting forecast CPI inflation at 5.0% y/y for 2024 … today’s figure is unlikely to change its 2024 view.”

Core inflation, which excludes food and fuel prices, was unchanged in December at 4.5% in annual terms.

(Reporting by Nellie Peyton; Editing by Alexander Winning and Christina Fincher)




















Related posts

The Rise Of African Tech Hubs: How They Are Becoming The Silicon Valleys Of The Continent


New AI can shockingly predict how successful you’ll be in life

Tough Africans

Angola Cables joins Onix Data Centre in Ghana to Boost Digital Connectivity in West Africa

Tough Africans

Leave a Comment