Economist expects CPI to lift above 3%

Economist at RMB, Siobhan Redford, has explained that the CPI rate would be positively influenced by rising fuel prices.

Picture: 123rf.com

JOHANNESBURG - An economist said that she expected the consumer price index (CPI) for March to lift slightly to above 3%.

Statistics South Africa will release the data on the CPI on Wednesday morning.

Inflation was at 2.9% in February due to medical aid insurance.

Economist at RMB, Siobhan Redford, has explained that the CPI rate would be positively influenced by rising fuel prices.

South Africa saw some of the steepest petrol price hikes recently.

Redford said that it was always expected that oil prices would be incredibly high during the second quarter compared to the same time last year.

“The 2.9 was very low because we saw the decline because of medical aid insurance but fuel prices are going up and this is starting to add more positively to inflation.”

In March, Stats SA reported that CPI eased to an annual 2.9% in February, down from 3.2% in January.

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