South Africa’s inflation rate for February held steady at 3.2% year-on-year, with a month-on-month increase to 0.9%. Economists had expected a slight rise to 3.3%, still below the central bank’s target. The Reserve Bank’s next policy decision is anticipated amidst various economic risks.
In February, South Africa’s headline consumer inflation remained stable at 3.2% year-on-year, as reported by the national statistics agency. This figure did not change compared to January, when inflation also stood at 3.2%. However, month-on-month inflation increased to 0.9% in February from 0.3% in January, indicating a recent uptick in prices.
Economists had predicted a slight increase in annual inflation, forecasting 3.3%. This figure remains significantly below the South African Reserve Bank’s target of 4.5%. As the central bank prepares to announce its next monetary policy decision on Thursday, it has already cut interest rates in its last three meetings as part of its economic strategy.
Market analysts suggest that the Reserve Bank may choose to pause its rate-cutting strategy due to potential risks from the ongoing tariff disputes initiated by U.S. President Donald Trump and internal conflicts within the ruling coalition concerning the national budget. These factors could impact the economic landscape and the central bank’s forthcoming decisions.
In summary, South Africa’s consumer inflation for February remains stable at 3.2% year-on-year, with a month-on-month increase to 0.9%. Despite economist forecasts predicting a slight rise to 3.3%, the figure remains under the Reserve Bank’s 4.5% target. The upcoming monetary policy decision may reflect caution in response to international and domestic economic pressures.
Original Source: money.usnews.com
