Economist at NKC African Economists, Elize Kruger, expects inflation to remain unchanged as Stats SA prepares to release the consumer prices inflation number for May 2019 on Wednesday.
Inflation has remained within the Reserve Bank’s 3% to 6% target band.
Kruger say the low inflationary outlook should encourage the Reserve bank to cut interest rates.
She says,”May is a low survey month, so only a limited survey will be impacting on industry in addition to the normal food and fuel price and the cost fuel prices increase – in the case of petrol by 54 cents per litre and diesel only by 1 cent per litre, which will remain a muted impact on CPI in May.”
“So expect an unchanged headline number. On the core inflation side, we expect a small tick-up from 4.1% in April to 4.2% in May.”