Inflation eases to 2.7% year-on-year in March
The South African Reserve Bank is unlikely to cut interest rates next month, because of inflationary pressures that lie ahead
Consumer
On a monthly basis, consumer prices increased by 0.4% in March, according to data published by
The annual inflation rate for goods eased to 2% in March from 2.5% and that for services decelerated to 3.5% from 3.8%.
Inflation for housing and utilities was at 4.4%, while food and non-alcoholic beverages came in at 2.7% and restaurants and accommodation services were at 4.2%.
'Inflation pressure generally remains quite benign, and this vindicates the Reserve Bank's decision to cut interest rates since late last year,' said Elna Moolman, head of South Africa Macroeconomic Research at Standard Bank.
'This doesn't, however, necessarily remove all of the Reserve Bank's potential concerns around medium-term upside pressure on inflation from the global tariff developments and a weaker currency. This doesn't necessarily guarantee further interest rate cuts in the short term.'
The
Economists expect the central bank to keep rates unchanged again in May.
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