South Africa inflation edges up but economists see more rate cuts soon
South Africa's headline inflation rate edged up in September, but the increase was smaller than expected and economists said they thought the central bank could restart interest rate cuts soon.
Headline consumer inflation quickened to 3.4% in annual terms from 3.3% in August, below the median forecast of 3.5% in a Reuters poll.
A breakdown by Statistics South Africa showed the main drivers of the marginally higher rate were housing and utilities and food and non-alcoholic beverages, which both came in at 4.5% year-on-year last month.
Analysts said the inflation rate could continue to rise modestly in the remainder of 2025, but not to the extent the central bank will be worried.
A stronger rand exchange rate, falling inflation expectations and a sluggish economy could all encourage the South African Reserve Bank (SARB) to ease monetary policy further, they say.
The SARB has already delivered three interest rate cuts this year, but it paused at its last policy meeting in September to assess the impact of previous cuts.
It has forged ahead with policy easing despite announcing in July that it would effectively target 3% inflation, while the finance minister has not formally changed its 3%-6% target range.
The SARB's next monetary policy announcement is scheduled for November 20.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
