Consumer inflation has risen to 4.8% year on year for August, this is from 4.6% in July.
Chief economist at Stanlib, Kevin Lings says this was expected and is still comfortably within the target.
There is no indication of sustained build up in inflation in South Africa.
Let's say for the next six months, inflation is well under control.— Kevin Lings, Chief economist
He explains what this means for interest rates.
We cut interest rate recently, I think they (South African Reserve Bank) will cut interest rates another 25 basis points, that suggests a fairly cautious approach. I don't think there is scope to be very dramatic because obviously South Africa is still very vulnerable given where our credit ratings are.— Kevin Lings, Chief economist
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