Inflation inches downward

22 May 2024 - 11:38
By Khulekani Magubane
The data is available a week before the South African Reserve Bank’s Monetary Policy Committee makes its next repo rate announcement.
Image: 123RF/peopleimages12 The data is available a week before the South African Reserve Bank’s Monetary Policy Committee makes its next repo rate announcement.

Stats SA announced annual consumer price inflation (CPI) dropped from its March levels in April.

The data was released on Wednesday, a week before the South African Reserve Bank’s (Sarb) monetary policy committee (MPC) makes its next repo rate announcement.

“Annual consumer price inflation was 5.2% in April, down from the 5.3% in March. The consumer price index increased by 0.3% in April,” Statistician-General Risenga Maluleke said in the CPI statistical release.

Stats SA said the main contributors were housing and utilities, which increased 5.8% year-on-year, miscellaneous goods and services which increased 7.2% year-on-year, food and nonalcoholic beverages which increased 4.7% year-on-year, and transport which increased 5.7% year-on-year.

“In April the annual inflation rate of goods was 5.7%, unchanged from March; for services, it was 4.6%, down from 5% in March.”

Financial institutions and research groups expected April’s consumer inflation rate to be unchanged from March’s 5.3%. It was 5.6% in February.

Speaking to BusinessLIVE last month, Sarb governor Lesetja Kganyago said the MPC rates announcement will take place on May 30. At the time, there was consensus the MPC would keep rates at 8.25%.

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