South Africa’s consumer inflation remained at 3.2% year-on-year in February. Month-on-month inflation rose to 0.9%. Economists predicted a slight increase, but the rate stays below the central bank’s target. The central bank’s next monetary policy decision is anticipated amid potential external and internal economic risks.
In February, South Africa’s headline consumer inflation held steady at 3.2% year-on-year, mirroring January’s rate. Month-on-month, inflation increased to 0.9% in February from 0.3% in January. Economists had anticipated a slight rise to 3.3% but noted that the current rate remains significantly below the South African Reserve Bank’s target of 4.5%.
The central bank is scheduled to announce its next monetary policy decision on Thursday. This announcement follows a trend of rate cuts in the last three meetings. Economists surveyed by Reuters speculate that the bank may pause its rate-cutting strategy due to potential risks from external factors, including U.S. President Donald Trump’s tariffs and a political impasse regarding the national budget within the ruling coalition.
South Africa’s consumer inflation remained constant at 3.2% in February, with a notable month-on-month increase. The current inflation rate is below the target set by the central bank, which is expected to consider these factors in its upcoming monetary policy decision. The prevailing risks from international trade tensions and internal budgetary issues may influence the bank’s approach to future rate cuts.
Original Source: www.marketscreener.com
