South Africa’s consumer inflation remained at 3.2% year-on-year in February, with a month-on-month inflation rate of 0.9%. Economists had predicted a slight increase to 3.3%, but it is below the target of 4.5% set by the Reserve Bank, which may pause rate cuts due to economic uncertainties.
In February, South Africa’s headline consumer inflation held steady at 3.2% year-on-year, as reported by the national statistics agency. This figure remained unchanged from the prior month. On a month-on-month basis, inflation recorded an increase to 0.9% in February, a rise from January’s 0.3%.
Economic forecasts had anticipated a slight uptick in annual inflation to 3.3%, yet it remains significantly below the South African Reserve Bank’s target of 4.5%. The central bank is scheduled to make its next monetary policy announcement on Thursday, following three consecutive rate cuts.
Economists surveyed by Reuters suggest that the Reserve Bank may halt its rate-cutting measures, particularly in light of uncertainties stemming from international trade tensions and ongoing disputes within the ruling coalition regarding the national budget.
In summary, South Africa’s inflation rate has stabilized at 3.2%, while month-on-month figures show a rise to 0.9%. Predictions regarding an increase in inflation fell short, remaining below the Reserve Bank’s target rate. With significant economic uncertainties present, a pause in rate cuts by the central bank seems likely in the near term.
Original Source: money.usnews.com
