South African CPI
What does a slowing annual consumer price index (CPI) mean for rising SA interest rates?
The South African annual consumer Index (CPI) has edged slightly lower for a second month to 7.5% in September from 7.6% in August. This slight decline can be attributed to lower fuel prices, but higher food and non-alcoholic beverages (NAB) inflation have market participants buzzing.
Food and NAB increased to 11.9% from 11.3% in August, while accommodation, rentals, and personal care also notably rose year over year. This will continue to place local consumers under immense pressure and could see SARB stay committed to raising rates to bring down inflation.
Not much reaction from the Rand (ZAR) after the CPI data as the local currency remains weak to a much stronger Dollar, with the JSE All Share Index also ticking lower on the day.
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