The Consumer Price Index (CPI) slowed to 5.5% year-on-year in October, falling lower than market expectation.
Statistics South Africa (Stats SA) released the data on Wednesday.
Market expectation was that CPI would fall to 5.7% in October, down from the 6% recorded in September.
According to Stats SA, prices increased by 0.2% between September and October 2013.
The food and non-alcoholic beverages index increased by 0.9% between September and October 2013, while the transport index decreased by 0.3% between September and October.
The data comes as the Reserve Bank’s Monetary Policy Committee (MPC) is meeting to discuss interest rates. The bank has kept the repo rate unchanged at 5% since July 2012.
“The latest figures confirm that inflationary pressures remain relatively benign despite rand weakness. Inflation is expected to average 5.8 % this year compared with 5.7 % in 2012.
“Interest rates are still likely to remain on hold deep into 2014 while international factors threaten rand weakness,” said Nedbank economists.
Following its last meeting of the year, the MPC will make its announcement on interest rates tomorrow.
Standard Bank, which also expects the central bank to keep the repo rate unchanged, lowered its 2013 CPI forecast from 5.9% to 5.8%. – SAnews.gov.za
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Article source: http://mype.co.za/new/2013/11/cpi-slows-to-5-5-in-october/