Higher food and transport prices drove up inflation in September, while muted clothing sales contributed to disappointing retail sales growth numbers. Consumer inflation breached the 3%-6% target band and rose to 6.1% in September after having dipped to 5.9% in August. Retail sales growth, a key gauge of consumer spending, slowed to 0.2% in August, from 1.2% in July. The better-than-expected inflation number and gloomy retail sales, coupled with a rebounding rand, suggest the Reserve Bank may press pause on interest rates at its next monetary policy committee (MPC) meeting in November. Food prices stabilised but remained high and were among the main contributors to rising inflation in September compared with a year ago. Inflation was also fuelled by transport costs, as well as housing and utilities. Economists expect inflation to rise further because of higher fuel and food prices before coming down in 2017. Capital Economics Africa economist John Ashbourne said inflation would prob...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.