Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram

South African inflation eases on cooling fuel prices

Daba Finance/South African inflation slows
BREAKING NEWSDecember 14, 2023 at 10:01 PM UTC

South African inflation experienced a slowdown due to a significant drop in fuel prices, though other categories continued to show elevated levels, creating mixed signals for the central bank. 

The consumer price index (CPI) rose by 5.5% in November compared to the same month a year earlier, following a 5.9% gain in October, according to a statement from Statistics South Africa. This figure slightly exceeded the median estimate of 5.4% from 16 economists surveyed by Bloomberg. The South African Reserve Bank (SARB) targets inflation within the range of 3% to 6%. 

Despite food price inflation being higher than anticipated at 9% year on year, the overall data suggests that the SARB is likely to maintain a cautious stance, keeping interest rates at elevated levels in the upcoming months. The central bank remains wary of ongoing cost pressures, and the mixed signals in the inflation data contribute to the complexity of its decision-making regarding monetary policy.

Key Takeaways

The SARB maintained its main interest rate unchanged for the third consecutive policy meeting last month, with Governor Lesetja Kganyago emphasizing the bank's view that inflation would stabilize around the mid-point of its target band by 2025. Razia Khan, Chief Economist for Africa and the Middle East at Standard Chartered Bank noted that headline inflation is expected to decrease further in December due to anticipated fuel price cuts. Khan expressed the belief that with the improving inflation outlook and considering the current temporary weakness in the rand, the SARB could be in a position to reverse some of the previous interest rate hikes. The inflation figures released on Wednesday had a minimal impact on the rand, which was trading around 0.5% weaker against the dollar on the day. The market seems to be monitoring both inflation trends and external factors, such as currency fluctuations, in assessing the future direction of South Africa's monetary policy.

South Africa
Inflation
Interest Rates
SARB
Statistics South Africa

Think someone else should see this?

share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

To invest in this opportunity and other opportunities across Africa

Download the daba finance app on your mobile through
appstore iconappstore icon
Phone Image

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved