South Africa’s inflation edges up in August, day before rate decision
2023.09.20 05:08
© Reuters. A customer compares prices while shopping at a Pick and Pay shop in East London, in the Eastern Cape province, South Africa, March 17, 2023. REUTERS/Siphiwe Sibeko
JOHANNESBURG (Reuters) -South Africa’s headline consumer inflation edged up to 4.8% year-on-year in August from 4.7% in July, data from Statistics South Africa showed on Wednesday.
The statistics agency said core inflation also rose to 4.8% year-on-year in August from 4.7% in July.
The figures came a day before the South African Reserve Bank (SARB) will announce its latest interest rate decision on Thursday.
Analysts expect the SARB will leave its main interest rate unchanged as inflation is comfortably within its target range of 3% to 6%.
The SARB held off from a rate hike when it met in July – its first ‘hold’ decision after 10 consecutive hikes aimed at curbing inflation.
The bank’s Monetary Policy Committee has stressed it wants to see inflation sustainably around the midpoint of its target band before it contemplates rate cuts.
