South Africa inflation slows for second month in April
South Africa’s inflation eased slightly in April, with headline consumer inflation dropping to 5.2% year on year from 5.3% in March, just below economists’ expectations of 5.3%. The South African Reserve Bank, aiming for 3% to 6% inflation, has kept its main interest rate steady at 8.25% since May 2023. Core inflation, excluding food and fuel, decreased to 4.6% from 4.9% in March.
JOHANNESBURG, May 22 (Reuters) – South Africa’s inflation slowed slightly in April, its second decline in a row but it still remains above the central bank’s preferred level.
Headline consumer inflation dropped to 5.2% year on year in April from 5.3% in March, Statistics South Africa data showed. Economists polled by Reuters had predicted inflation would come in at 5.3%.
The South African Reserve Bank has been trying to steer inflation to the midpoint of its target range of 3% to 6%, keeping its main interest rate at 8.25% ZAREPO=ECI since May 2023.
The central bank said last month that the path back to 4.5% inflation would probably be “bumpy and protracted” due to setbacks in the disinflation trajectory.
On a month-on-month basis, headline inflation was at 0.3% in April compared to 0.8% a month before.
Core inflation, which excludes food and fuel prices, was at 4.6% year on year in April, down from 4.9% in March.
Source Link: https://www.cnbcafrica.com/2024/south-africa-inflation-slows-for-second-consecutive-month-in-april/
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