South Africa’s consumer inflation remained steady at 3.2% year on year in February, with a month-on-month rate of 0.9%. Economists predicted a rise to 3.3%, below the Reserve Bank’s target of 4.5%. The bank is set to announce its monetary policy decision soon, amid potential pauses in rate cuts due to external and internal economic risks.
In February, South Africa’s headline consumer inflation remained steady at 3.2% year on year, as reported by the statistics agency on Wednesday. This figure is consistent with January’s inflation rate. However, in month-on-month terms, inflation rose to 0.9% in February, compared to 0.3% in January.
Economists had anticipated a slight rise in annual inflation to 3.3%, yet this remains significantly below the South African Reserve Bank’s target of 4.5%. As the reserve bank approaches its next monetary policy decision announcement scheduled for Thursday, it is noteworthy that it has cut rates in its previous three meetings.
Recent economic analyses suggest that the central bank may pause its rate-cutting strategy, especially considering potential risks associated with U.S. President Donald Trump’s tariff policies and the ongoing stalemate within the ruling coalition regarding the national budget.
To summarize, South Africa’s consumer inflation held steady at 3.2% annually in February, with a month-on-month increase to 0.9%. The inflation remains below the desired target of the South African Reserve Bank. The bank’s forthcoming monetary policy decision may reflect careful consideration of external economic pressures and domestic fiscal challenges.
Original Source: www.marketscreener.com
