South Africa's producer price inflation (PPI) accelerated unexpectedly to 12,4% year-on-year in April, increasing the possibility of a bigger than previously expected interest-rate hike in June. Statistics South Africa said on Thursday headline PPI -- which represents domestic output -- accelerated from an upwardly revised 11,9% in March.
South Africa's targeted CPIX (consumer inflation less mortgage costs) rate quickened unexpectedly to a near five-and-a-half year high of 10,4% year-on-year in April from 10,1% in March, official data showed on Wednesday. Mike Schussler, economist at T-Sec, said: "That seals the case for interest-rate hikes. Inflation continues to shock."
South Africa's economic growth rate slowed to 2,1% in the first quarter of 2008 on a seasonally adjusted and annualised basis, official data showed on Tuesday, citing a sharp drop in mining due to a power crisis. Statistics South Africa said Q1 GDP slowed from 5,3% in the fourth quarter of 2007.
South Africa's January producer price index (PPI) data will be released at 11.30am on Thursday March 6, Statistics South Africa said on Monday. The data, which will include changed weightings and new products in the PPI basket, was initially scheduled for release on February 28. It was delayed twice on problems related to the introduction of the new structure.
South Africa's retail sales growth slowed to 2% year-on-year in September at constant prices, data showed, but analysts said this was likely not enough to hold off another interest rate hike in December. Retail sales growth slowed from a downwardly revised 6,6% in August, Statistics South Africa said on Wednesday.
Growth in demand for credit from South Africa's private sector slowed in September, but remained above forecasts, keeping up pressure for higher interest rates. Credit growth eased to 22,46% year-on-year from an upwardly revised 23,16% in August, while money supply growth also eased to 24,94%.
South Africa's net gold and foreign exchange reserves increased slightly to $27,449-billion in August, data showed on Friday, as the softer rand currency slowed the pace of reserves build-up. The figure rose from $26,965-billion at the end of July.
Growth in demand for credit from South Africa's private sector slowed to 23,13% year-on-year in July, but money supply rose above forecasts, official data showed on Thursday. The Reserve Bank said credit expansion slowed from a revised 24,99% in June, but the broadly defined M3 measure of money supply grew 24,46%.
The deputy president of the African National Congress, Jacob Zuma, is to lunch with top international fund managers on Wednesday at Citigroup. This follows a report posted on the Financial Times that Citigroup was to host a dozen top international fund managers to a private lunch with Zuma.