Inflation at lowest since June 2005 may not herald lower rates, Nedbank says
Annual consumer price inflation slowed to 3% in April from March’s 4.1%
The slowdown in SA's inflation to the lower end of the Reserve Bank's target range probably won't be enough to entice the Bank to cut interest rates that are already at a record low, according to economists at Nedbank.
The rate of change in the consumer price index slowed to 3% in April, the lowest since hitting 2.8% in June 2005, according to Statistics SA data released on Wednesday. It was the first monthly reading reflecting the effects of the national lockdown, which left all but the most essential goods out of sale, while restrictions on movements restricted fieldwork.