South Africa’s consumer inflation was steady at 3.2% year-on-year in February, with a month-on-month rise to 0.9%. Economists expected a slight increase to 3.3%. The South African Reserve Bank will announce its monetary policy soon, potentially pausing rate cuts due to external economic factors.
South Africa’s year-on-year headline consumer inflation held steady at 3.2% in February, as reported by the statistics agency. This figure remained unchanged from January. On a month-to-month basis, inflation rose to 0.9% in February, compared to 0.3% in the previous month.
Economists had anticipated a slight increase in annual inflation to 3.3%, although this remains significantly below the South African Reserve Bank’s target of 4.5%. The central bank is scheduled to announce its forthcoming monetary policy decision soon, having lowered rates at its past three meetings.
There is speculation among economists polled by Reuters that the bank may pause its current cycle of rate cuts. This consideration arises due to potential risks linked to U.S. President Donald Trump’s tariff policies and challenges regarding the budget within the ruling coalition.
In summary, South Africa’s consumer inflation rate remained stable at 3.2% year-on-year in February, with a notable month-on-month increase in inflation. Economists had predicted a minor rise, but the rate stays below the Reserve Bank’s target. The upcoming monetary policy decision from the central bank may reflect these economic conditions and external risks.
Original Source: money.usnews.com
