South Africa’s consumer inflation held steady at 3.2% year-on-year in February, with a month-on-month increase to 0.9%. Economists had anticipated a rise to 3.3%, and the Reserve Bank will announce its monetary policy decision soon, amid considerations of external and internal economic pressures.
In February, South Africa’s headline consumer inflation remained stable at 3.2% year-on-year, according to data released by the statistics agency. This figure was consistent with January’s rate, while month-on-month inflation rose to 0.9%, compared to 0.3% in January.
Economists had predicted a slight increase in annual inflation to 3.3%, which is notably 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, having already implemented rate cuts during its previous three meetings.
Market analysts surveyed by Reuters suggest that the bank might pause its rate-cutting strategy due to various risks, including U.S. President Donald Trump’s tariff policies and an impasse within the ruling coalition regarding the national budget.
In summary, South Africa’s consumer inflation remains steady at 3.2% year-on-year for February, with a minor uptick in monthly inflation rates. The upcoming monetary policy decision from the Reserve Bank may reflect concerns over global economic risks and internal political challenges, potentially impacting future interest rates.
Original Source: www.marketscreener.com
