The rand was firmer at midday on Wednesday after local consumer inflation data came in slightly better than expected. It was also supported by a marginally weaker dollar, which crossed the $1.20 level against the euro again. The annual rate of headline consumer inflation rose to 4.8% in August from 4.6% in July against expectations of a 4.9% rise. On a monthly basis, consumer price index (CPI) inflation increased by 0.1%, less than market expectations of an increase of 0.2%. The inflation data could be supportive of a rate cut by the Reserve Bank’s monetary policy committee (MPC), with an announcement due on Thursday. Market consensus is for a 25 basis point cut in the repo rate. SA’s inflation has trended lower in recent months and is well below the recent peak of 6.7% recorded in December 2016. It is expected to remain well under control and is forecast to average 5.4% in 2017, helped largely by a further moderation in food inflation, as well as favourable base effects, said Stanl...
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