.jpg)
2 hours ago
2
Article content
(Bloomberg) — South African inflation eased in February, but the central bank is unlikely to view this as a reason to cut interest rates next week as it weighs the impact of conflict in the Middle East.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Consumer prices rose 3% year-on-year compared with 3.5% a month earlier, Pretoria-based Statistics South Africa said in a statement on Wednesday. The median estimate of 15 economists in a Bloomberg survey was 3.1%.
Article content
Article content
Article content
The South African Reserve Bank targets 3% inflation, but the data probably won’t sway expectations that it will leave the benchmark rate unchanged at 6.75% at the conclusion of its policy meeting on March 26.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Officials need to assess the fallout from the US-Israel war on Iran, which has sent energy prices surging with sprawling implications for the global economic outlook.
Article content
Oil prices have jumped more than 40% since the fighting started on Feb. 28, with Brent crude trading at around $102 a barrel on Wednesday. The rand has meanwhile weakened sharply against the dollar.
Article content
Central Bank Governor Lesetja Kganyago on March 5 said that South African inflation was influenced more by currency weakness than oil prices.
Article content
Policymakers are also monitoring food inflation, with meat prices already under pressure as the nation battles to contain an outbreak of foot-and-mouth disease in its herds. Elevated fuel prices will have a knock-on effect on the cost of fertilizer, a key agricultural input, giving officials another reason for caution.
Article content
The biggest contributors to inflation were housing and utilities, which rose 4.8% and contributed 1.1 percentage point to the increase, and food and non-alcoholic beverages which rose 3.7%, adding 0.7 percentage point. Headline inflation rose 0.4% in the month, up from 0.2% in January.
Article content
Core inflation, which excludes volatile food, fuel and energy prices to grant a picture of underlying price pressures, rose 3% year-on-year. That compared with 3.4% in January. It was up 0.7% in the month versus 0.3%.
Article content
Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.
Article content
(Updates with more details from fifth paragraph.)
Article content
English (US)