South Africa’s inflation rose to 3.2% in January from 3.0% in December, remaining within the central bank’s target range. Core inflation stood at 3.5%. The central bank has lowered interest rates amid global economic uncertainty.
In January, South Africa witnessed a slight increase in inflation, marking the first report since the consumer price basket was updated by the statistics agency. The inflation rate rose to 3.2% year-over-year, up from 3.0% recorded in December. This figure is lower than the economists’ prediction of 3.3% and remains within the South African Reserve Bank’s target range of 3% to 6%.
Core inflation, which excludes volatile sectors like food and energy, was reported at 3.5% in January, aligning with analysts’ expectations. In recent monetary policy meetings, the central bank has reduced interest rates three times, with the decision in January reflecting a divided opinion amid a backdrop of global economic uncertainty.
In summary, while South Africa’s inflation has shown a slight uptick, it remains within the central bank’s target range and below expectations. Core inflation is consistent with predictions, indicating stability in certain sectors. The central bank’s approach to interest rates reflects ongoing concerns regarding global economic conditions.
Original Source: www.zawya.com
