In February, South Africa’s consumer inflation held steady at 3.2% year-on-year, with a month-on-month increase to 0.9%. Economists had predicted a slight rise to 3.3%. The Reserve Bank is set to make a monetary policy announcement, potentially pausing rate cuts due to external and internal challenges.
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 is consistent with January’s inflation rate. On a month-on-month basis, inflation increased to 0.9% in February, compared to 0.3% in January.
Economists had anticipated a slight rise in annual inflation to 3.3%, yet it remains significantly below the target of 4.5% set by the South African Reserve Bank. The central bank is poised to announce its next monetary policy decision on Thursday, following a series of three consecutive rate cuts.
Analysts surveyed by Reuters suggest that the Reserve Bank may pause its rate-cutting strategy due to various risks, such as potential impacts from U.S. President Donald Trump’s tariff confrontations and a deadlock within the ruling coalition related to the national budget.
In summary, South Africa’s consumer inflation rate remained stable at 3.2% year-on-year in February, with a slight increase in month-on-month inflation. Economic forecasts indicated a small anticipated rise that did not materialize, reflecting ongoing economic considerations. The Reserve Bank’s upcoming monetary policy decision may be affected by external risks and internal budgetary disputes.
Original Source: www.marketscreener.com
