Johannesburg - South Africa's headline inflation edged back above the upper end of the central bank's target in September while retail sales growth slumped to a two year low, dimming hopes of an interest rate cut in November.
Headline consumer inflation quickened to 6.1 percent year-on-year in September from 5.9 percent in August, data from Statistics South Africa showed on Wednesday, prompting analysts to predict the Reserve Bank (SARB) was unlikely to lower rates to ease pressure on consumers.
“While the inflation print is better than we expected, we doubt it will make much difference to the SARB,” Africa analyst at Standard Charted Bank Razia Khan said, adding that base-related pressures on the headline number looked set to continue.
The central bank has raised benchmark rates by 200 basis points since early 2014, and has said that despite the poor growth outlook, only vast improvements in growth and inflation would convince it to begin cutting rates.
Full story at IOL.
By Mfuneko Toyana.
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