SA inflation slows to 4.6%

Petrol price decreases have been cited as a contributing factor to lower inflation.

Picture: EWN.

JOHANNESBURG - Inflation has slowed to 4.6% for August, down from 5% the month before.

The South African Reserve Bank is set to announce its repo rate decision this afternoon and inflation will be a key deciding factor.

Reserve Bank governor Lesetja Kganyago warned at the MPC's meeting in July that inflation was a concern.

Howver, this new figure shows that inflation is still well within the bank's target of 3 to 6%.

The petrol price decreases has been cited as a contributing factor to lower inflation.

Therefore the bank may leave the repo rate unchanged this afternoon, which is good news for those in debt.

Investors, on the other hand, will be hoping for an increase, in order to receive better returns.

However, the weak rand may be another deciding factor with regards to the MPC's decision.