Connect with us

Hi, what are you looking for?

A customer pays a vendor at a market in Durban on May 22, 2010/AFP


S.Africa inflation rises, another rate hike expected

A customer pays a vendor at a market in Durban on May 22, 2010/AFP

A customer pays a vendor at a market in Durban on May 22, 2010/AFP

JOHANNESBURG, Feb19 – South African consumer prices rose 5.8 percent in January, official statistics showed on Wednesday, tipping the scales towards another interest rate rise when the reserve bank next meets in March.

Statistics South Africa reported that consumer prices rose by 0.4 of a percentage point versus December, pushed higher by increased transport and food prices.

The 5.8 percent rate was slightly above consensus and is close to the six percent upper end of the South African Reserve Bank’s target range.

The central bank unexpectedly raised rates to 5.5 percent at its meeting in January, citing concerns about inflation.

Before its rate hike, the central bank had forecast inflation would peak about 6.6 percent toward the end of the year.

The latest figures will add to calls for a further rate rise when the bank meets again on March 25 to 27.

“Despite the fact that the rand has pulled back recently, the inflation outlook remains poor,” said analysts at Nedbank.

“(We) expect that the Reserve Bank will raise rates by 50 basis points at the next Monetary Policy Committee meeting and then keep rates steady until the second half of 2015.”

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...