South Africans may not have to tighten their belts so hard this month, as an interest rate cut looks imminent after consumer inflation dropped for a third month.
File Picture: Ayanda Ndamane / Independent NewspapersAccording to Statistics South Africa , this is the lowest inflation print since April 2021 when the rate was also 4.4%.The fact that consumer inflation has now dipped below the Reserve Bank's key target of 4.5% means that an interest rate cut may be done deal.
Els argued that the SARB would have room to cut rates at both of its remaining meetings for 2024, on September 19 and November.The economist said the Reserve Bank has successfully brought inflation within its target range, and with global pressures, particularly from the US, starting to ease, the path for a rate cut seems clear.
In contrast, inflation for food and non-alcoholic beverages and alcoholic beverages and tobacco edged higher in August.
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