Consumer inflation unchanged at 5% in October
Annual consumer price inflation met economists expectations for October, but they are split on whether the Reserve Bank will hike rates on Thursday
Inflation as measured by the annual change in the consumer price index (CPI), was unchanged at 5% in October from the month before, and in line with market expectations.
The main contributor to October’s headline figure was transport costs, which rose 10.9% year on year, contributing 1.5 percentage points, while food and alcoholic beverages rose 6.1%, contributing 1.1 percentage points. Fuel costs were up 23.1% year on year.
While October’s inflation print matches the median estimate of 18 economists polled by Bloomberg, they remain evenly split on whether rising price pressures will result in the Reserve Bank lifting interest rates from five-decade lows on Thursday.
Surging energy costs and supply chain disruptions have stoked the concern that price pressure will linger into 2022, and force global central banks to raise rates.
gernetzkyk@businesslive.co.za