Consumer price inflation edges higher to 4.9% in August 2021 from 4.6% in July 2021
22 Jul, 2022

Consumer price inflation edges higher to 4.9% in August 2021 from 4.6% in July 2021

Highlights

Headline consumer price inflation edged higher to 4.9% y/y in August 2021 after easing to 4.6% y/y in July 2021, in line with Bloomberg consensus expectations.
Core inflation edged up to 3.1% y/y in August 2021 from 3.0% in July 2021, showing a persistent weakness in consumer demand.
Major drivers of the rise in headline inflation were fuel prices which rose by 19.6% y/y in August from 15.2% in July.
We forecast that inflation will average 4.0% in 2021 and 4.2% in 2022, drifting around the South African Reserve Bank’s 4.5% mid-point target over the medium-term.
Based on both our and the SARB’s inflation forecasts, we believe the Monetary Policy Committee will retain interest rates at 3.5% at Thursday’s meeting and at least until the end of Q1 2022 but the risks of an earlier hike have increased.

Click below to download the full report…

ENDS

Author

Website | + posts
Share on Your Socials

You May Also Like…

Share

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!