South Africa have every reason to smile following a fall in inflation for the
first time in nearly a decade.
Business Report, cash-strapped consumers have allayed fears that the decision
by the South African Reserve Bank (SARB) could curtail Christmas spending,
following reports of inflation backdrop released on Wednesday.
expected to make it decision today based on Statistics data released yesterday,
showing that significant inflation reduced to 3.7?percent in October.
the report, food, alcoholic, non-alcoholic beverages, as well as tobacco and
transport, contributed to the inflation decline.
comes in the 31st month that inflation fell below SARB’s target of 3-6?percent,
with market consensus standing at 4?percent.
report shows that, inflation decline stood at 4.1?percent.
comes against a backdrop of a further decrease in food inflation to 3.5?percent
from 3.7?percent in September.
to 0.3?percent, contributing an overall inflation of 0.1?percentage.
Report further writes that, SARB’s Monetary Policy Committee (MPC) will today (Thursday)
announce its rates decision, after it cut the repo rate by 25 basis points in
July from 6.75?percent to 6.5?percent, and decided to keep it unchanged in
In October, SARB
slashed the country’s growth forecast to 0.5?percent from 1.5?percent.
Africa’s inflation has been quite stable for the past years, levelling off
between 4.58 and 6.3 percent.
expects to stabilize its inflation at around 5 percent by the year 2024.