Consumer price growth decelerated to 4.9 percent from 5.1 percent in July, Pretoria-based Statistics South Africa said Wednesday in a statement on its website. The median estimate of 18 economists in a Bloomberg Survey was 5.2 percent. Prices fell 0.1 percent in the month.
The release come as the Monetary Policy Committee is meeting in preparation for a announcement on borrowing costs Thursday. Only three of the 19 economists in a Bloomberg survey project that the panel will raise its benchmark rate for the first time since 2016. The rest forecast an unchanged stance of 6.5 percent.
Core inflation, which excludes the prices of food, non-alcoholic beverages, energy and gasoline, slowed to 4.2 percent from 4.3 percent.
S. Africa, in grip of recession, may consider rate increase
(Bloomberg) – South African policy makers may be about to consider whether to follow counterparts from Russia to Turkey and raise interest rates – even when the country is battling a recession.
Investors and economists are divided on the chances that officials will respond to emerging-market turmoil with the country's first upward move in borrowing costs since 2016. While forward-rate agreements suggest there's a chance of an increase on Thursday, just three of 19 economists in a Bloomberg survey expect that.