Consumer Inflation Slows For Third Consecutive Month, Paving The Way For Rate Cut

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consumer inflation slows for third consecutive month paving the way for rate cut

Headline consumer inflation in South Africa fell to 4.4 year-on-year in August from 4.6 in July, Statistics South Africa announced on Wednesday.

The 4.4 reading was slightly lower than the expected number, which spells good news for consumers in the country.

Economists polled by Reuters had forecast inflation would fall to 4.5, taking it to the midpoint of the central bank's target range for the first time in more than three years.

This paves the way for a rate cut to be announced by the South African Reserve Bank tomorrow.

In month-on-month terms inflation was at 0.1 in August compared to 0.4 a month before.