In February, South Africa’s consumer inflation remained at 3.2% year on year, while month-on-month inflation rose to 0.9%. Economists had predicted a slight increase to 3.3%, still below the Reserve Bank’s target of 4.5%. The central bank’s next policy decision is anticipated soon, amidst concerns from U.S. trade tariffs and political challenges domestically.
In February, South Africa’s headline consumer inflation held steady at 3.2% year on year, as reported by the country’s statistics agency. This rate is unchanged from the previous month. Notably, month-on-month inflation increased to 0.9%, a rise from January’s rate of 0.3%.
Economists anticipated a slight increase in annual inflation to 3.3%, however, this figure 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, following rate cuts in its last three meetings.
A Reuters survey of economists suggests that the bank may decide to pause its rate-cutting actions due to ongoing uncertainties related to U.S. President Donald Trump’s trade tariffs and the political deadlock within the ruling coalition regarding the national budget.
The steady consumer inflation rate of 3.2% in February indicates a stable economic environment in South Africa, despite slight month-on-month fluctuations. With the central bank’s upcoming announcement, there is cautious speculation about its monetary policy direction amidst international and domestic uncertainties. Overall, inflation remains below the desired target, reflecting the complexities of the current economic landscape.
Original Source: money.usnews.com
