South Africa’s consumer inflation held steady at 3.2% year-on-year in February, with a rise in month-on-month inflation to 0.9%. This rate is below the South African Reserve Bank’s target of 4.5%. Economists predict a potential pause in rate cuts amidst external and internal economic challenges.
South Africa’s consumer inflation rate remained constant at 3.2% year-on-year in February, according to data released by the national statistics agency. This figure matches January’s inflation rate, indicating stable pricing in the consumer market. Month-on-month, inflation rose to 0.9% in February, an increase from January’s 0.3%.
Economists had projected a slight increase in annual inflation to 3.3%, still beneath the South African Reserve Bank’s target of 4.5%. The bank will announce its next monetary policy decision on Thursday, following a trend of rate cuts in its previous three meetings.
Analysts, as surveyed by Reuters, anticipate that the central bank might pause further rate cuts, primarily due to uncertainties stemming from U.S. President Donald Trump’s tariff policies and ongoing budget disagreements within the ruling coalition. This cautious approach reflects the bank’s attention to external economic pressures and domestic fiscal stability.
The steady consumer inflation rate of 3.2% in February aligns with January’s figures, while month-on-month inflation shows an uptick. Despite predictions for a slight increase, the rate remains below the Reserve Bank’s target. Upcoming monetary policy decisions may be influenced by both international trade tensions and internal budgetary disputes, suggesting a pause in rate cuts may be possible.
Original Source: www.marketscreener.com
