Tag: consumer price inflation
The question is not if the MPC will cut interest rates...
A sharp fall in the rate of consumer price inflation has defanged what was initially paraded as 'aggressive' monetary policy action intended to stimulate the floundering economy. Given a muted inflation outlook, and the depressed economic setting, the question is not if the South Africa’s Reserve Bank’s Monetary Policy Committee (MPC) will cut interest rates this week, but rather by how much?
SARB rate cut – a boost for agriculture
In the midst of a recessionary domestic economy, favourable inflation outlook and lower oil prices, the South African Reserve Bank (SARB) got room to cut interest rates by 100 basis points to 5.25%. A rate cut, downside inflation outlook and supportive rand boost agriculture rebound.
Small uptick in SA Consumer Confidence
South Africa’s latest Consumer Confidence Index (CCI) for the second quarter of 2019 shows a three point increase to 93, presenting a marginally more positive quarter on quarter picture for consumer sentiment in South Africa.
Inflation rises slightly in December
Statistics South Africa (StatsSA) reported on 24 January that consumer price inflation increased from 4.6% year-on-year (y-o-y) in November 2017 to 4.7% y-o-y in December. This resulted in full-year inflation declining to 5.3% last year from a mean of 6.4% in 2016. The latest inflation number is the ninth consecutive monthly reading falling within the South African Reserve Bank (SARB) target range (3%-6%).
