Consumer inflation slows to just inside the Reserve Bank’s target band
CONSUMER inflation slowed to 5.9% year on year in August, from the 6% reported for July. That was within the expectations of economists, whose forecasts had ranged from the 5.8% expected by Investec and Barclays Research, to Bloomberg’s consensus forecast of 6% and Trading Economics’ 6.1%. The consumer price index (CPI) increased 0.1% in August from July, Statistics SA said. Food inflation is still running high in SA, due to the lagged effects of a devastating drought and weakness in the rand earlier in the year. Food inflation was 11.3% year on year in August, keeping pace with the 11.3% reported for July. The drought is expected to break this summer, with the arrival of the La Nina global weather pattern, it will be some time before crops, and therefore food prices, recover. The Reserve Bank meets to set monetary policy this week, with its decision due on Thursday. Inflation at the upper end of, or outside, the 3%-6% target band the and weak economic growth are the two main factor...
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