Latest inflation data expected to give insight into MPC's future decisions on interest rate
Although inflation has come down slightly, it's still not at the midpoint of the reserve bank's target band of 3% and 6%.
A YouTube screengrab of SA Reserve Bank Governor Lesetja Kganyago delivering the Monetary Policy Committee’s January statement on 25 January 2024.
JOHANNESBURG - The latest inflation data is expected to give some hints about the future of the interest rate path in the upcoming meetings by the reserve bank's monetary policy committee (MPC).
Year-on-year inflation has eased marginally to 5.1% from 5.2% in the previous month.
Stats SA released the latest inflation reading on Wednesday.
The drop in the inflation reading brings it to a six-month low.
In addition to a decrease in some food categories, chief director for price statistics at Stats SA, Patrick Kelly, said that the overall cost of housing and utilities, transport and fuel prices also dropped.
"Inflation has remained within the 5% to 6% range for the past 10 months."
Although inflation has come down slightly, it's still not at the midpoint of the reserve bank's target band of 3% and 6%.
In a recent MPC meeting last week, the central bank seemed upbeat about inflation dropping below the midpoint by the end of the year.
Some economists remain divided about what this means for the September and November policy rates decision.