https://newsletter.en.creamermedia.com
Africa
Africa
africa

South Africa inflation drops sharply, cementing rate cut expectations

South African Rand currency

Photo by Reuters

21st August 2024

By: Reuters

  

Font size: - +

South Africa's inflation dropped more than expected in July, falling to within touching distance of the central bank's target and cementing analysts' expectations that the bank will cut interest rates next month.

Headline consumer inflation fell to a more than three year low of 4.6% year on year in July from 5.1% in June, statistics agency data showed on Wednesday, whereas analysts had forecast annual inflation of 4.9% last month.

The South African Reserve Bank likes to see inflation around 4.5%, the midpoint of its 3% to 6% target range, but it has been above that level since mid-2021.

Before the latest inflation print, most economists in a Reuters poll had predicted the SARB would reduce its main policy rate by 25 basis points in September, and a cut now looks more certain.

"The SARB has definitely run out of excuses to not cut interest rates ... and might have to consider a bigger cut," independent economist Elize Kruger said.

In month-on-month terms, inflation was at 0.4% in July compared to 0.1% a month before.

Edited by Reuters

Comments

Research Reports

Showroom

Klüber Lubrication
Klüber Lubrication

Klüber Lubrication ensures that the world’s essential systems—drive units, machines, and water flow—operate efficiently, sustainably, and reliably...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 September 2024
Magazine round up | 13 September 2024
13th September 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.237 0.33s - 195pq - 2rq
Subscribe Now