October CPI in target band

Nov 25, 2009 11:12 AM | By Sapa

Consumer price inflation fell back into the South African Reserve Bank's target range of three to six percent in October, Statistics SA says.

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Shoppers are reflected in a Christmas window display at Vincent Park Centre.
Photograph by: alan eason

CPI has not fallen within SARB's target range since April 2007.

"While CPI inflation has regained target, it is unlikely to consistently remain within the three to six percent band over the next six months due to base effects and the impact of salary and wage increases, which are still running well above six percent," Investec group economist Annabel Bishop said.

"It should rise just above six percent in the next couple of months, but consistently regain target toward the middle of 2010, providing electricity tariffs are not hiked by more than 30 percent in nominal terms," she said.

Comments

Nov 25 2009 11:33:16 AM
shrott

Viva Mboweni viva

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Nov 25 2009 11:41:26 AM
pickedlast

I can hear Cosatu now "We demand that the Reserve Bank cut interest rates by 3%"

Which would be very foolish. I think our interest rate is in a good space now, it is low enough so that people can afford credit but not so low that if we were to hit a bump, we would be able to lower it to cushion the blow.