ECONOMIC WEEK AHEAD: Stats SA to release the last CPI data before VAT hike hit
Consumer-related data set for release this week will be among the last sets of economic data measured before April’s VAT increase takes hold. On Wednesday, consumer inflation figures for March and retail sales figures for February will both be released by Statistics SA. This inflation print will be the last consumer price index (CPI) reading before the implementation of the one percentage point increase in the VAT rate, from 14% to 15%, and the hike in the fuel levy. "While we don’t anticipate an immediate or outsized inflationary response to the VAT increase, the March reading is likely to be the trough of the current inflation cycle," FNB chief economist Mamello Matikinca said. NKC economist Elize Kruger said the risk to inflation for March was on the downside, with inflation expectations of 4.0%. "All of this will confirm that the underlying trend in inflation is moderate and should endorse the decision made by the Reserve Bank’s monetary policy committee to cut the repo rate by ...
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