The South African consumer inflation came in on the upside at 5.1% for July 2018 but still within the SARB’s target range of 3-6%. The food component however was still on the low side at 3.4% driven by the disinflation in bread and cereals and fruits which fell by 3,0% and 4.2% respectively year on year, as well as significant decelerating in meat inflation to 5,6%. Bread and cereals inflation declined as expected as the hefty domestic supplies kept a lid on prices. The recent harvest is … [Read more...] about Food Inflation relatively steady
inflation
Don’t let inflation eat away your retirement savings
The key to having sufficient funds to retire comfortably does not solely depend on how early one starts saving; but should also consider how much one is saving and whether contributions and return objective are in line with inflation. Preenay Sathu, Channel Head for FNB Financial Advisory, says, “Inflation is the rate at which the price of goods and services such as bread, milk, transport and education rises over a certain period. As inflation increases, there are many considerations we must … [Read more...] about Don’t let inflation eat away your retirement savings
How the agricultural sector will help tame 2017 food inflation
The current rains are a welcome relief to farmers; they are the proverbial silver lining in what has been a gloomy season. "The past year has been testing for the industry; the drought has had an impact on the economy with South Africa’s gross domestic product (GDP) decelerating in 2016. We anticipate that prices will moderate now in 2017 as the new season production outlook improves with the rains across the producing areas," said Paul Makube, Senior Agricultural Economist at FNB Makube … [Read more...] about How the agricultural sector will help tame 2017 food inflation
Shocking increase in inflation
Consumer price inflation (CPI) has breached the upper limit of the South African Reserve Bank's (Sarb's) target range by accelerating to 6.2% year-on-year in January 2016. The consensus forecast for headline CPI, which includes the volatile food and energy components, was for an increase to 6.0% in January. The Sarb's target rage is between 3% and 6%. Statistics SA announced on Wednesday that the headline CPI (for all urban areas) annual inflation rate in January 2016 was 6.2%. This rate was … [Read more...] about Shocking increase in inflation
Highest inflation levels
South Africa's annual consumer price inflation increased to 5.2% in December 2015, in line with expectations and 4 percentage points higher than November's 4.8% rise. It was the highest rate for the year as consumers battle with increased food and fuel prices and interest rate hikes. On average, prices rose by 0.3% between November 2015 and December 2015, Statistics SA announced on Wednesday. In December the CPI for goods increased by 5.3% year-on-year (3.8% in November), and the CPI for … [Read more...] about Highest inflation levels
SARB pits monetary policy stance under the microscope
Amid the rand's tumultuous start to the year, the SA Reserve Bank (Sarb) said that it will assess the appropriateness of the current monetary policy stance. "The opening weeks of 2016 suggest that the conduct of monetary policy in South Africa will be further complicated," said deputy governor Daniel Mminele, addressing European Economics and Financial Centre in London on Tuesday. "The currency remains a key source of risk for inflation in South Africa, despite some recent evidence of … [Read more...] about SARB pits monetary policy stance under the microscope
Producer inflation rises to 4.2%
Prices at the factory gate shot up in October to 4.2%, mostly because of higher costs for food, alcohol and tobacco products. Statistics SA said on Thursday that October's annual percentage change in the producer price index (PPI) was 4.2%, up from 3.6% in September. From September 2015 to October 2015 the PPI for final manufactured goods increased by 0.9%. The PPI impacts on the consumer price index (CPI) and thus inflation, and this increase will likely be felt by consumers. The CPI … [Read more...] about Producer inflation rises to 4.2%
CPI inflation rate up to 4.7%
The headline CPI annual inflation rate in June 2015 was 4.7%, Stats SA announced today. "This rate was 0.1 of a percentage point higher than the corresponding annual rate of 4.6% in May 2015," Stats SA said in a statement. "On average, prices increased by 0.4% between May 2015 and June 2015." The increase in the CPI will be important to note as the SA Reserve Bank's Monetary Policy Committee meets this week to determine whether to increase the country's repo rate. An announcement is … [Read more...] about CPI inflation rate up to 4.7%
Interest Rate Hike ‘not expected’ today
Indebted South Africans may breathe a sigh of relief if the South African Reserve Bank's Monetary Policy Committee decides not to hike interest rates on Thursday. South African inflation having risen to 4.5% in April and not to 4.7% as expected has actually taken the heat off the Reserve Bank to raise interest rates at its Monetary Policy Committee (MPC) meeting on Thursday, according to global foreign exchange house Citi. This is from 4.0% in March and the second downside surprise since … [Read more...] about Interest Rate Hike ‘not expected’ today
Petrol Price hikes fuelling inflation
South Africa’s inflation rate is set to increase to 4.5% as a continued result of petrol hikes, according to Fin24’s inflation expert. The Inflation Factory’s (TIF) Riyadh Bhyat said the large petrol price changes are having a significant effect on Consumer Price Index (CPI), revealing that his Real Time CPI Index stood at 114.1 at the end of April, implying a year-on-year (y/y) inflation of 4.5% and month-on-month inflation of 0.9%. Stats SA will release the official results later on … [Read more...] about Petrol Price hikes fuelling inflation
Inflation predicted to drop to 5.8%
South African consumers can breathe a sigh of relief as the cost of living is likely to drop to moderate levels. Finance Minister Nhlanhla Nene has projected the Consumer Price Index (CPI) to drop to 5.8% in 2015 - which is within the 3 to 6% target band. But the forecast inflation could change negatively should the Rand depreciate any further. The Minister made the announcement when he tabled the National Treasury’s Medium Term Budget Policy Statement (MTBPS) in the National Assembly on … [Read more...] about Inflation predicted to drop to 5.8%
Inflation up 0.8% on June 2014
South Africa's Consumer Price Index (CPI) moderated to 6.3% year-on-year in July, Statistics South Africa (Stats SA) said on Wednesday. In July, CPI continued to breach the 3% - 6% target range of the Reserve Bank, though at a lower rate than the 6.6% recorded in June 2014. According to Stats SA, the food and non-alcoholic beverages index was unchanged in July 2014, while the housing and utilities index increased by 2.1% between June and July 2014. On a month-on-month basis, inflation … [Read more...] about Inflation up 0.8% on June 2014
Reserve Bank to focus on core CPI
The Reserve Bank is to pay close attention to core inflation, so as to assess the effect of a weaker rand feeding through to prices in the economy. In its Monetary Policy Review (MPR) released on Tuesday, the central bank said the core inflation rate "has tracked higher and is the focus of heightened scrutiny". Core inflation excludes energy and food costs. "Stronger second-round effects from depreciation and sharp increases in unit labour costs would have significant and negative … [Read more...] about Reserve Bank to focus on core CPI
Inflation to be contained by subdued economy: Reserve Bank
Due to the relatively subdued state of the South African economy, inflation is expected to be contained, says Reserve Bank Deputy Governor Daniel Mminele. "The moderate pace of 'core' inflation (4.4% in March when excluding food, petrol and energy) shows that despite some evidence of price pressures becoming more broad-based, these are still expected to remain contained by the relatively subdued state of the domestic economy," he said on Thursday. Inflation has breached the central bank's … [Read more...] about Inflation to be contained by subdued economy: Reserve Bank
Reserve Bank sounds warning on inflation
The South African Reserve Bank views risks to the country's inflation projections as being skewed slightly to the upside. "Uncertainty regarding future developments in cost–push pressures and the exchange rate pose an upside risk to the outlook, which more than offsets the downside risks from possible contagion effects from the European crisis and associated slow growth," said the bank in its Monetary Policy Review released on Tuesday. The inflation rate is expected to continue trending … [Read more...] about Reserve Bank sounds warning on inflation
