June consumer inflation retreats from May’s 30-month high to 4.9% – Stats SA

 People stand in a queue at Alex Mall on 16 July 2021 

in Alexandra, Gauteng. (Photo: Gallo Images / Alet Pretorius)

Consumer inflation slowed to 4.9% in June from May’s 30-month high of 5.2%, Statistics South Africa (Stats SA) said on Wednesday. This will help cement the case for the South African Reserve Bank (Sarb) to hold rates steady this week. But food and fuel inflation remain elevated, pointing to price pressures which the recent wave of looting could accelerate.

The 4.9% was broadly in line with economists’ expectations and comes ahead of the interest rate decision by Sarb’s Monetary Policy Committee (MPC) meeting on Thursday. The MPC is seen holding its repo rate steady at 3.5% and inflation remains well within its mandated 3% to 6% target range.

Demand pressures remain weak in an economy with a jobless rate over 40% based on its widest definition. And inflation is seen moderating further this year.



By Ed Stoddard.
Full story at Daily Maverick.