BL Premium reports that consumer inflation slowed in September for the fourth month running, reaching its lowest level since March 2021 as fuel prices continued to fall. This paves the way for another interest rate cut in November.
Annual consumer inflation eased to 3.8% from August’s 4.4%, Stats SA reported on Wednesday. The lower headline rate was driven primarily by transport costs, which fell 1.1% – the first drop in 13 months – after a 2.8% rise the previous month. Lower inflation in the transport sector was mainly the result of lower fuel prices, which fell for a fourth successive month. The average fuel price in August was 9% lower than a year ago, while price increases on vehicles were slower. Food inflation in September remained unchanged from August’s 4.7%. Meat, bread and cereals, sugar, sweets and desserts, and oils and fats all recorded softer price increases, while fruit, vegetables, cold beverages and fish prices accelerated. While annual consumer inflation was softer, the September consumer price index (CPI) edged up 0.1% on a monthly basis, matching the increase reported in August. KPMG economist Frank Blackmore commented that lower inflation would allow the SA Reserve Bank to reduce interest rates further at its November meeting, potentially by 50 bps, though a 25 bps cut remained more likely.
- Read the full original of the report in the above regard by Jacob Webster at BusinessLive (subscriber access only)
- Read too, Inflation dips below 4% for the first time in over three years, bolstering case for interest rate cut, at Moneyweb
- En ook, Inflasie sak tot onder 4%, by Maroela Media
Get other news reports at the SA Labour News home page