South Africa’s targeted consumer inflation slowed to 6,1% year-on-year in September, slightly below expectations, from 6,4% in August, official data showed on Wednesday.
Statistics South Africa said headline CPI stood at 0,4% on a monthly basis in September compared with 0,3% the previous month.
A Reuters poll last week forecast CPI would slow to 6,2% year-on-year and come in at 0,5% on a monthly basis.
Inflation is now only slightly above the top end of the South African Reserve Bank’s 3% to 6% target band.
”It’s a nice figure, but it’s not going to last,” Efficient Group economist Dawie Roodt said.
”While inflation might fall below 6% in a month’s time, it’ll soon be back above 6% again,” he said.
Mike Schussler, director at Economists.co.za, said: ”It is certainly better than I had expected. It’s good news amid the bad news, but it doesn’t change the interest rates outlook, especially given Eskom’s plans.
”It is also good news for bond markets, but I think this is as low as we are going to go before we start picking up again next year.” — Reuters, Sapa, I-Net Bridge