The latest data from Statistics South Africa shows that the consumer price index rose to a four-month high, surging to 5.6% in February from 5.3% in January 2024.
Inflation heats up for a second consecutive month. Annual consumer #inflation quickened in February, rising to 5,6% from 5,3% in January and 5,1% in December.https://t.co/n1I7lvwdAc#StatsSA #CPI
— Stats SA (@StatsSA) March 20, 2024
Factors contributing to the rise in the inflation rate in February encompass housing and utilities, miscellaneous goods and services, food and non-alcoholic beverages, as well as transport.
Potatoes, eggs and sweet potatoes recorded the sharpest price increases in the 12 months to February.
Read more here: https://t.co/rbNfTrgFxi
#StatsSA #CPI #inflation pic.twitter.com/3DbvIe1XnY— Stats SA (@StatsSA) March 20, 2024
Chief Economist at Efficient Group Dawie Roodt says the increase is unlikely to significantly influence the Reserve Bank’s anticipated decision to maintain unchanged interest rates.
Roodt says, “The inflation number of 5.6% was slightly better than what I expected, but we expected a bit of an acceleration in the inflation rate so I’m not too concerned about that. I think inflation is likely to stay at these kinds of levels for a couple of months and thereafter, start to decline a little bit further depending on what happens with the rand exchange rate and the international oil prices.”
“I don’t think the Reserve Bank will change their stance on this specific number and I think they will change interest rates when they meeting again next week,” Roodt added.
