More trying as well as avoidable difficult times would be confronting and setting in for many more households in South Africa over the unstable financial projection. Consumer inflation has gone up, but slightly below market expectations, following increases in the fuel price.
South Africa’s Consumer Price Index (CPI) annual inflation rate increased to 4.8% in August from 4.6% in July, Stats SA announced on Wednesday.
“On average, prices increased by 0.1% between July 2017 and August 2017,” it said.
The market was expecting a “fuel price-induced jump to 4.9%”, Rand Merchant Bank analyst Gordon Kerr said in an investor note on Wednesday.
The price of petrol increased by 67 cents a litre in September and by 19c in August.
The CPI is still within the SA Reserve Bank’s 3% to 6% target band, TreasuryOne said after the CPI release. “There is a good chance the SARB may look to cut interest rates tomorrow by another 25 basis points. The USD/ZAR is trading a little better this morning at R13.27.”
StatsSA said that the rise in inflation was impacted by the following:
- Food and non-alcoholic beverages decreased from 1.1 percentage points in July to 1.0 percentage point in August. The index increased by 5.7% year-on-year.
- Alcoholic beverages and tobacco increased from 0.2 of a percentage point in July to 0.3 of a percentage point in August. The index increased by 4.3% year-on-year.
- Transport increased from 0.1 of a percentage point in July to 0.6 of a percentage point in August. The index increased by 3.9% year-on-year.
- Recreation and culture decreased from 0.2 of a percentage point in July to 0.1 of a percentage point in August. The index increased by 2.4% year-on-year.
- Miscellaneous goods and services decreased from 1.2 percentage points in July to 1.1 percentage points in August. The index increased by 7.5% year-on-year.