South Africa’s consumer inflation was steady at 3.2% year-on-year in February, with a month-on-month increase to 0.9%. Economists expected a slight rise, but inflation remains below the Reserve Bank’s 4.5% target. The central bank may pause rate cuts due to external economic risks and budget discussions.
South Africa’s headline consumer inflation held steady at 3.2% year-on-year in February, matching the previous month’s figure. According to the latest data from the statistics agency, month-on-month inflation rose to 0.9% compared to January’s 0.3%.
Economists had anticipated a slight rise to 3.3% for annual inflation, which remains significantly below the South African Reserve Bank’s target of 4.5%. The central bank is scheduled to announce its monetary policy decision soon, following three consecutive interest rate cuts.
Polls indicate that economists believe the bank may pause its rate-cutting activities. This outlook is influenced by global economic concerns, particularly related to U.S. tariffs and internal political tensions surrounding the national budget.
South Africa’s consumer inflation rate remained unchanged at 3.2% year-on-year in February, despite a month-on-month increase. This stability is below the Reserve Bank’s target and suggests a cautious approach may be adopted in monetary policy amidst external and internal economic pressures. The next central bank meeting will be crucial in determining future interest rate trajectories.
Original Source: money.usnews.com
