Consumer inflation figures 'great news'

JOHANNESBURG, SOUTH AFRICA - Nov 25 2009 11:50

South Africa's targeted consumer inflation slowed in line with expectations to 5,9% year-on-year in October, returning to the 3% to 6% target band for the first time in more than two-and-a-half years, official data showed on Wednesday.

Statistics South Africa said annual headline consumer price index (CPI) slowed from 6,1% in September while it was unchanged on a monthly basis compared with 0,4% the previous month.

Said Mike Schussler, director at Economists.co.za: "It's better than what I had expected and is great news. I think we are ending the bottoming out of inflation, and will head back up from here on.

"It's been a week of good news and is what the economy needed."

Freddie Mitchell, economist at Efficient Group, said, "At 5,9% we are in the inflation band, so that's good news. But just how long we are going to stay there is dependent on electricity hikes next year, and also when consumer demand starts returning to the market, what effects that will have on consumer prices in the future. But it's good news for now." -- Reuters, I-Net Bridge

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Consumer inflation figures 'great news'

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