STATISTICS SA announced yesterday that headline consumer inflation in South Africa fell to 4.4% year-on-year in August from 4.6% in July, with this being the third consecutive month of inflation falling.
In month-on-month terms inflation was at 0.1% in August compared to 0.4% a month before.
This is the lowest inflation print since April 2021 when the rate was also 4.4%. Lower annual rates were recorded for several product groups, most notably transport, housing, and restaurants and hotels. In contrast, inflation for food and non-alcoholic beverages and alcoholic beverages tobacco edged higher in August, Stats SA said.
The data released will be music to the South African Reserve Banks Monetary Policy Committee, giving them leeway to finally decide on a reduction of the repurchase rate later today.
This is the first time since April 2021 that inflation has come in below the SARBs 4.5% target.
