ECONOMIC WEEK AHEAD: Fuel price rise not expected to accelerate inflation data much
Inflation is expected to moderate further in 2018, writes Asha Speckman
December’s increase in fuel prices may have had little effect on the benign inflation environment, figures due this week are expected to show. If anything, inflation is expected to moderate further in 2018 on expectation that the rand will remain resilient, with negligible demand-led inflationary pressures, economists have said. This should be good news for investors in the week during which Deputy President Cyril Ramaphosa and Finance Minister Malusi Gigaba will "sell" the South African economy at the World Economic Forum in Davos. The latest inflation figures for December will be published on Wednesday and economists expect a slight acceleration following an increase in petrol prices of 71c a litre, and diesel of 60c a litre in December. Investec economist Kamilla Kaplan predicted CPI of 4.7% year on year, from 4.6% in November. First National Bank (FNB) forecast 4.9%. Thanks to a reduction in supply-side pressure, especially food inflation and a stronger rand, CPI could average 5...
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